Which Type of Borrowers Were Least Likely to Default in Their

question 13

Multiple Choice

Which type of borrowers were least likely to default in their mortgage at the beginning of the financial crisis?

• A) those with fixed-rate mortgages who made large down payments
• B) those with alt-A loans
• C) subprime borrowers
• D) those with adjustable-rate mortgages

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Definitions:

Free Trade

The unrestricted buying and selling of goods and services between countries without the imposition of tariffs, quotas, or other restrictions.

Domestic Producers

Companies or individuals that manufacture or produce goods and services within their home country, as opposed to importing them from abroad.

Tariffs and Quotas

These are trade policies where tariffs are taxes on imported goods, and quotas are limits on the amount of a good that can be imported.

Import Substitution

An economic policy aimed at replacing foreign imports with domestic production to promote local industries.