Subprime Lending Gained Popularity Because of All of the Following

question 49

Multiple Choice

Subprime lending gained popularity because of all of the following, except:

• A) investing in a home was seen as the safest investment one could make.
• B) it was meant to encourage those with risky credit to make a safe investment.
• C) the value of homes had not fallen for over 60 years.
• D) helping poor to own a home.

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Definitions:

Inductive Reactance

The opposition that an inductor presents to the change in current flow due to its stored magnetic energy, expressed in ohms.

Parallel Circuit

An electrical circuit in which components are connected across common points or junctions to provide multiple paths for current to flow.

Inductive Reactance

The opposition that an inductor presents to alternating current, due to the inductor's tendency to resist changes in current flow, measured in Ohms (Ω).

Parallel Circuit

A type of electrical circuit in which multiple components are connected across the same voltage source, allowing current to split and flow through multiple paths.