The government making loans that are secured by collateral of dubious value to prop up the financial system is an example of:

Question

Quizplus · Accepted Answer

Making loans that are secured by collateral of dubious value is risky because there is a high probability that the loans will not be repaid. This type of lending can contribute to a financial crisis if too many risky loans are made and the borrowers default on their obligations.

The Government Making Loans That Are Secured by Collateral of Dubious