Which Type of Borrowers Were Least Likely to Default in Their

question 13

Multiple Choice

Which type of borrowers were least likely to default in their mortgage at the beginning of the financial crisis?

• A) those with fixed-rate mortgages who made large down payments
• B) those with alt-A loans
• C) subprime borrowers
• D) those with adjustable-rate mortgages

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Definitions:

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.

Accounts Payable

A liability account on a company’s balance sheet representing money owed to creditors for goods and services purchased on credit.

Special Journals

Accounting journals designed for recording specific types of transactions in detail, such as sales, purchases, cash receipts, and disbursements, for efficient processing.

Cash Receipts Journal

A dedicated accounting ledger for documenting all cash inflows.