Problems Underlying the US Sub-Prime Loans That Triggered the GFC

question 3

Multiple Choice

Problems underlying the US sub-prime loans that triggered the GFC included which of the following?

• A)Borrowers often had a poor employment record.
• B)Borrowers often had a history of loan defaults.
• C)LVR's were commonly 100 per cent.
• D)It was assumed property prices would always rise.
• E)All of these.

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Definitions:

Concurrent Validity

The ability of a diagnostic category to estimate an individual’s present standing on factors related to the disorder but not themselves part of the diagnostic criteria. One of the major criticisms of the DSM is that it sheds little light on the non-symptom attributes of people with a given diagnosis.

Diagnostic Category

A class or division in a system of classification, particularly in medical and psychological contexts, that denotes a specific condition or disorder.

Non-Symptom Attributes

Features or qualities of a disease or disorder that are not directly related to the main symptoms, potentially affecting diagnosis or treatment.

Socio-Economic Status

An economic and sociological combined total measure of a person's work experience and of an individual's or family’s economic and social position in relation to others, based on income, education, and occupation.