The sub-prime mortgage mess is dominating the news. Many people signed up for adjustable rate mortgages and now they can't afford their payments. Many of these people were misled by the lender. Which financial principle from chapter one most applies?

Question

Quizplus · Accepted Answer

The principle "The best protection is knowledge" applies in this situation as many people were misled by the lender. If they had more knowledge about the terms and conditions of the loan, they may not have gotten into a situation where they cannot afford their payments.

The Sub-Prime Mortgage Mess Is Dominating the News