One Contributing Factor to the 2007-2009 Financial Crisis Was the Structuring

question 5

Multiple Choice

One contributing factor to the 2007-2009 financial crisis was the structuring of mortgage loans with:

• A) high initial payments, offset by significantly lower payments later.
• B) low initial payments, offset by significantly higher payments later.
• C) high initial payments, offset by high payments later.
• D) very short maturities.

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Definitions:

Assignor

The party in a contract who transfers their rights or interests in a property or agreement to another party, known as the assignee.

Negligent Misrepresentation

A false statement made carelessly that causes someone to incur a loss or damage, often addressed in cases of fraud or deceit.

Innocent Misrepresentation

A false statement made without knowledge of its falsity, leading another to enter into a contract under false beliefs.

Duress

A situation where a person is compelled to act against their will or make a legal decision under the threat of harm.