All of the Following Are Examples of Risky Mortgages That

question 23

Multiple Choice

All of the following are examples of risky mortgages that became more common in the 2000s EXCEPT

• A) alt-A mortgages.
• B) adjustable-rate mortgages with low rates for a few years and then higher rates in later years.
• C) mortgages requiring down payments of at least 20%.
• D) subprime mortgages.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's unique character.

Reality Principle

A concept in psychoanalytic theory referring to the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

Ego

In psychology, a part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Personality Test

A questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup.