The Housing Bubble That Began Building in 2001 Was Primarily

question 29

Multiple Choice

The housing bubble that began building in 2001 was primarily the result of

• A)the availability of low-cost affordable homes.
• B)low interest rates and increased liquidity provided by the Federal Reserve.
• C)a change in income tax policy that favored home ownership.
• D)increased demand for U.S.real estate by international investors.
• E)lack of available residential rental property.

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Definitions:

Rescind

To cancel, revoke, or repeal a contract, agreement, or offer.

Unsecured Creditors

Creditors who have extended credit without requiring collateral, making their claims less secure in the event of a borrower's bankruptcy.

Bankruptcy Estate

All legal or equitable interests of the debtor in property, both tangible and intangible, at the time of the bankruptcy filing.

Reaffirmation Agreement

A contract in which a debtor agrees to continue paying a dischargeable debt after the bankruptcy process, essentially renewing the debt.