When Housing Prices Fell as They Did Beginning in 2006

question 121

Multiple Choice

When housing prices fell as they did beginning in 2006 following the housing market bubble,most banks and other lenders ________ the requirement for borrowers,making it ________ for potential home buyers to obtain mortgages.

• A)tightened; easier
• B)tightened; harder
• C)eased; easier
• D)eased; harder

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Definitions:

Strategic Management

The ongoing planning, monitoring, analysis, and assessment of all that is necessary for an organization to meet its goals and objectives, focusing on long-term strategic direction.

Specific

Clearly defined or identified; precise or exact.

Profitability Gap

The difference between the actual profitability of a business and its potential profitability under optimal conditions.

Investment Intensity

Indicates the level of capital required to generate revenue within a business or industry, reflecting the nature of assets and resources needed.