By the Height of the Housing Bubble in 2005 and Early

question 120

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 sub-prime borrowers ________ and "Alt-A" borrowers ________.

• A)with flawed credit histories; who did not document their incomes
• B)who borrowed money at rates below the prime interest rate; who had AAA credit ratings
• C)who borrowed more than 120 percent of the value of the house; with no proof of U.S.citizenship
• D)who purchased homes in depressed housing markets; who purchased homes which were repossessed by government agencies.

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Definitions:

Operations

The day-to-day activities and tasks involved in running a business or organization, focusing on the creation and delivery of products or services.

Production

The process of creating goods and services from various resources, involving stages such as planning, designing, and manufacturing.

Tangible Products

Goods that have a physical form and can be touched, such as electronics, furniture, and vehicles.