The Federal Reserve lowering interest rates from mid2000 to the end of 2002 greatly increased the money supply; however, opportunities to invest yielded paltry returns leading bankers to offer _____ in order to earn a higher return.
A) revolving lines of credit
B) home equity lines of credit
C) fixedrate mortgage loans
D) subprime mortgage loans

Question

The Federal Reserve lowering interest rates from mid­2000 to the end of 2002 greatly increased the money supply; however, opportunities to invest yielded paltry returns leading bankers to offer _____ in order to earn a higher return.
A) revolving lines of credit
B) home equity lines of credit
C) fixed­rate mortgage loans
D) subprime mortgage loans

Quizplus · Accepted Answer

The housing market boomed during this time due to the availability of subprime mortgage loans, which offered higher returns to bankers.

The Federal Reserve Lowering Interest Rates from Mid­2000 to the End

The Federal Reserve Lowering Interest Rates from Mid2000 to the End