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Recall Application 4, "Securitization: the Good, the Bad, and the Ugly

Question 63

Multiple Choice

Recall Application 4, "Securitization: the Good, the Bad, and the Ugly," to answer the following questions:
-According to the application, "subprime" loans are loans that are:


A) low risk bonds sold to homeowners to finance their mortgages.
B) offered below prime interest rates.
C) offered to borrowers who would not qualify for loans using traditional criteria.
D) sold to the U.S. Treasury.

Correct Answer:

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