What Was the Impact of "Subprime" Mortgages on the Economy

question 65

Multiple Choice

What was the impact of "subprime" mortgages on the economy?

• A) They reduced interest rates.
• B) They increased defaults and caused large losses at financial institutions.
• C) They had a positive impact on economic growth.
• D) They initially reduced profits and sales of lenders.

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Definitions:

Greenhouse Effect

The process by which radiation from a planet's atmosphere warms the planet's surface to a temperature above what it would be without its atmosphere.

Persuasive

Having the ability to convince or influence someone to believe or do something through reasoning or argument.

That's-Not-All Technique

A sales strategy where an initial offer is improved upon before a decision is made in order to make it more appealing.

Store Manager

A person responsible for overseeing the day-to-day operations of a retail location, including staff management and financial performance.