Which of the Following Was a Contributing Factor to the Rising

question 135

Multiple Choice

Which of the following was a contributing factor to the rising default and foreclosure rates beginning in the latter half of 2006?

• A) the increasing share of 30-year, fixed rate loans as a share of outstanding mortgages
• B) the rigid standards of rating agencies, such as Moody's and Standard and Poors, which limited the development of mortgage-backed securities
• C) the price-stability policies of the Federal Reserve during 1998-2008
• D) the erosion of lending standards during the preceding decade

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Definitions:

Bulimia Nervosa

An eating disorder characterized by binge eating followed by purging to prevent weight gain.

Restricting-Type Anorexia

A subtype of anorexia nervosa where weight loss is achieved through dieting, fasting, or excessive exercise without regular binge-eating or purging behavior.

Anorexia

An eating disorder characterized by an abnormally low body weight, intense fear of gaining weight, and a distorted perception of body weight.

Bulimia

An eating disorder characterized by binge eating followed by purging to remove the food.