Which of the following was a contributing factor to the housing boom and bust and the financial crisis of 2008?
A) An increase in the share of loans to sub-prime borrowers.
B) An increase in the share of loans extended to borrowers making only a small down payment.
C) An increase in adjustable-rate mortgages (ARMs) as a share of the total.
D) All of the above.

Question

Quizplus · Accepted Answer

The financial crisis of 2008 was influenced by a combination of factors including a rise in sub-prime lending, loans with small down payments, and the prevalence of adjustable-rate mortgages, all of which contributed to the housing boom and subsequent bust.

Which of the Following Was a Contributing Factor to the Housing