Which of the Following Is False

question 75

Multiple Choice

Which of the following is false?

• A)Prior to the Great Depression, mortgages were balloon mortgages where only interest payments were made.
• B)Subprime mortgages are made to borrowers with poor credit scores, little or no down payment, and often at introductory rates that reset higher in two or three years.
• C)Fannie Mae and Freddie Mac were put into conservatorship in mid 2008.
• D)Today, savings associations originate and hold about 80 percent of all mortgages.

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Definitions:

AP

Advanced Placement, a program in the United States and Canada offering college-level curriculum and examinations to high school students.

AVC

Average Variable Cost; the total variable costs divided by the number of units produced, indicating the variable expense per unit of output.

MP

Marginal Product, which refers to the increase in output that results from employing an additional unit of input, holding all other inputs constant.

Average Fixed Cost

Average Fixed Cost refers to the total fixed costs (costs that do not change with the level of output) divided by the quantity of output produced. It decreases as production increases.