Which of the Following Tends to Lead to an Increase

question 19

Multiple Choice

Which of the following tends to lead to an increase in house prices?

• A) An increase in interest rates
• B) Regulators specifying a maximum level for the loan-to-value ratio on mortgages
• C) Banks reducing the minimum FICO score that borrowers are required to have
• D) An increase in foreclosures

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Definitions:

Terminate

Refers to the action of bringing something or an agreement to an end before its natural conclusion.

Cancellation

The act of crossing out a writing. The operation of destroying a written instrument.

Lapse

The termination or expiration of a legal right, policy, or agreement due to the passage of time or inaction.

Rescission

The act of unilaterally terminating a contract and returning all parties involved to the positions they were in prior to entering the contract.