When Housing Prices Fell as They Did Beginning in 2006

question 121

Multiple Choice

When housing prices fell as they did beginning in 2006 following the housing market bubble,most banks and other lenders ________ the requirement for borrowers,making it ________ for potential home buyers to obtain mortgages.

• A)tightened; easier
• B)tightened; harder
• C)eased; easier
• D)eased; harder

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Definitions:

Privileged Communications

Confidential communications that are protected from disclosure in legal proceedings under certain conditions.

Accounting Fraud

The intentional manipulation of financial statements to create a false appearance of a company's financial health, typically for personal gain.

Suspicious Financial Transactions

Financial activities that might suggest money laundering, fraud, or other illegal conduct, often monitored for regulatory compliance and crime prevention.

Registration Statement

The legal document filed with the securities commission detailing a corporation's securities offering to the public.