Which of the Following Was Not a Factor That Contributed

question 42

Multiple Choice

Which of the following was not a factor that contributed to the subprime mortgage crisis?

• A)false security derived from FDIC insurance on mortgage loans 
• B)lower down payments 
• C)households devoting 25% or more of their income to mortgage payments 
• D)lending to households with adverse credit ratings

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Definitions:

Year-End Inventory

The total counted value of inventory that a business owns at the end of its fiscal year, which is used to calculate cost of goods sold and profitability.

Weighted Average Cost

A method of calculating the cost of inventory based on the average cost of all similar goods available during a specific period.

Inventory Balance

The total value of all the goods that a company has in stock at a particular point in time.

Cost Of Goods Sold

The immediate expenses linked to the creation of a company’s sold products, encompassing costs associated with both materials and labor.