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In the Early 2000s, Laws Requiring Banks and Mortgage Brokers

Question 149

Multiple Choice

In the early 2000s, laws requiring banks and mortgage brokers to disclose the terms of home loans:


A) prevented Americans from entering into mortgage contracts that they did not understand.
B) were an example of how the government can act to solve the moral hazard problem.
C) were so numerous and detailed that borrowers didn't read or understand the information the companies had disclosed.
D) reduced statistical discrimination in the home mortgage market.

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