Borrowers Who Stated but Did Not Document Their Incomes Are

question 45

Multiple Choice

Borrowers who stated but did not document their incomes are referred to as

• A) subprime.
• B) alt-A.
• C) adjustable.
• D) securitized.

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Definitions:

Equity Multiplier

A financial ratio that measures a company's total assets financed by shareholders' equity, indicating the level of leverage used by the company.

Inventory Turnover Ratio

A measure of how frequently a company sells and replaces its stock of goods in a given period.

Level of Spoilage

The quantity or rate of goods that are damaged or deteriorated to the extent that they cannot be sold as first-quality merchandise.

Ratio Comparison

A method of analysis where financial ratios of a company are compared to industry benchmarks or the company's historical figures to assess performance.