Subprime Mortgages

question 111

Multiple Choice

Subprime mortgages:

• A)carry an interest rate below the prime rate.
• B)are in default.
• C)are made to buyers who do not qualify for a standard mortgage.
• D)can be made only by the government.

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Definitions:

Consumer Harm

Negative impacts experienced by consumers due to unethical business practices, defective products, or fraudulent activities.

FTC Adjudicative Proceeding

Is a formal process used by the Federal Trade Commission to resolve complaints against businesses for practices that violate federal laws protecting consumers.

Imprisonment

The act of confining someone in a prison or similar facility as a form of punishment for committing a crime.

Affirmative Disclosure

The requirement to voluntarily provide all relevant information that could influence a decision or consent, especially in agreements or transactions.