The Increase of Sub-Prime (Including Alt-A) Loans as a Share

question 26

Multiple Choice

The increase of sub-prime (including Alt-A) loans as a share of the total from 2001-2005 was an important contributing factor to the economic crisis of 2008 because

• A) these loans initially reduced the demand for housing.
• B) these loans initially reduced housing prices.
• C) the default and foreclosure rates on these loans are several times higher than conventional loans to prime borrowers.
• D) the default and foreclosure rates on these loans are considerably lower than conventional loans to prime borrowers.

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Definitions:

Routing Reports

Documents or systems that provide detailed information about the paths or processes taken by goods during distribution.

Overnight Travel

Travel that requires staying away from home for at least one night, often for business or work-related purposes.

Sales Manager

An individual who directs an organization's sales team, oversees sales operations, and is responsible for achieving sales targets.

Territorial Evaluation

The process of assessing and analyzing the geographical areas or regions in which a business operates to determine market potential, competition, and customer demographics.