By the Height of the Housing Bubble in 2005 and Early

question 81

Multiple Choice

By the height of the housing bubble in 2005 and early 2006,lenders had greatly loosened the standards for obtaining a mortgage loan,with many mortgages being granted to ________ borrowers with flawed credit histories and ________ borrowers who did not document their incomes.

• A)sub-prime; "Alt-A"
• B)adjustable rate; shadow-banking
• C)"credit crunch"; black market
• D)"fresh-start"; prime rate

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Definitions:

Collaborative

Involving two or more parties working together towards a shared goal.

Prejudice

An unjustified or incorrect attitude (usually negative) towards an individual based solely on the individual's membership of a social group.

Collectivity

Refers to the characteristics and dynamics of a group or community functioning as a cohesive unit, often focusing on shared values, goals, and actions.

Flexible Generalizations

The practice of making broad statements or conclusions that are adaptable and can be adjusted based on new information.