Which of the following was a contributing factor to the rising default and foreclosure rates beginning in the latter half of 2006?
A) The increasing share of 30-year, fixed rate loans as a share of outstanding mortgages.
B) The rigid standards of rating agencies, such as Moody's and Standard and Poors, which limited the development of mortgage-backed securities.
C) The price-stability policies of the Federal Reserve during 1998-2008.
D) The erosion of lending standards during the preceding decade.

Question

Quizplus · Accepted Answer

The erosion of lending standards, including the rise of subprime lending and adjustable-rate mortgages, contributed to the increase in defaults and foreclosures starting in 2006.

Which of the Following Was a Contributing Factor to the Rising