In the Early 2000s,the Government Passed Laws Requiring Banks and Mortgage

question 114

Multiple Choice

In the early 2000s,the government passed laws requiring banks and mortgage brokers to disclose the terms of home loans.This action by the government was an attempt to:

• A) solve the information asymmetry problem, but did not work as intended.
• B) solve the information asymmetry problem and led to an improvement in the housing market.
• C) screen out risky or shady banks and mortgage brokers.
• D) signal to consumers that the government cared about the value of their homes.

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Definitions:

Unexpected Aversive Events

Events that are not anticipated and cause a negative emotional or physical reaction.

Helplessness

A psychological state in which an individual feels unable to control or escape from their situation, often leading to decreased motivation and depression.

Manic Phase

A period in bipolar disorder characterized by elevated mood, increased activity or energy levels, and often impaired judgment.

Bipolar Disorder

A psychological disorder marked by severe fluctuations in mood, encompassing intense highs (mania or hypomania) and significant lows (depression).