The Fed's Low Short-Term Interest Rate Policy of 2002 to 2004

question 281

Multiple Choice

The Fed's low short-term interest rate policy of 2002 to 2004 made it highly attractive for buyers to purchase a house

• A) with a large down payment and a 30-year, fixed rate mortgage.
• B) with a large down payment and an adjustable rate mortgage.
• C) with a small down payment and an adjustable rate mortgage.
• D) quickly before housing prices began to decline in 2006.

---

Definitions:

Transient Ischemic Attack

Often called a mini-stroke, a transient episode of neurological dysfunction caused by the loss of blood flow to the brain, spinal cord, or retina, without acute infarction.

Abbreviation

A summarized form of a word or phrase.

Electroencephalogram

A test that measures electrical activity in the brain using electrodes attached to the scalp, used to detect potential problems associated with this activity.

Abbreviation

A brief form of a word or phrase designed to conserve space or eliminate repetition.