Subprime loans
A) involve elevated credit risk.
B) involve reduced credit risk.
C) typically have a higher loan-to-value ratio than do prime loans.
D) typically have a lower loan-to-value ratio than do prime loans.
E) a and c

Question

Quizplus · Accepted Answer

Subprime loans involve elevated credit risk because they are offered to borrowers with lower creditworthiness. They also typically have a higher loan-to-value ratio than prime loans, indicating a higher risk for lenders.

Subprime Loans