Which of the following is not a contributor to the development of the housing bubble?
A) People expected housing prices would continue to rise.
B) Leveraging more of a home's value became easier, putting buyers further into debt.
C) Mortgage lenders had lost some incentive to properly assess the risk of lending.
D) Homeowners lacked confidence in the institutions that made their loans.
Correct Answer:
Verified
Q42: Tranching allows packages of reliable, low-risk mortgages
Q43: Subprime mortgage loans:
A) are made to borrowers
Q44: What effect did the introduction of securitization
Q45: After World War II, home values:
A) fell
Q46: A mortgage loan made to a borrower
Q48: When the housing market bubble burst, many
Q49: Local banks could pass the risk involved
Q50: The housing bubble refers to:
A) housing prices
Q51: Securitization is the practice of:
A) packaging individual
Q52: The practice of packaging individual debts into
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents