The Term "Sub-Prime Mortgage Crisis" Refers to

question 89

Multiple Choice

The term "sub-prime mortgage crisis" refers to

• A)the difficulty new home owners have in negotiating a low interest rate with banks
• B)obtaining a mortgage interest rate of 8 percent instead of 7 percent
• C)the financial crisis precipitated in 2007 after a sharp increase in mortgage foreclosures
• D)lower interest rates on shorter term mortgages than longer term mortgages
• E)higher interest rates on shorter term mortgages than longer term mortgages

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Definitions:

Mergers Fail

A situation where the combination of two or more companies into one entity does not achieve the desired outcomes or financial performance.

Economies of Scale

The cost advantage that arises with increased output of a product, where the per-unit cost decreases as production expands.

Economy of Scope

Cost advantages that businesses experience by producing a variety of products rather than specializing in a single output.

Range of Products

The variety of different items that a company offers for sale to its customers.