Many people who signed up for adjustable-rate mortgages during the sub-prime mortgage debacle were no longer able to afford their payments.Many of these people were misled by their lenders.Which financial principle from Chapter 1 most applies?

Question

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The best protection is knowledge is the financial principle that most applies in this situation. Many people were misled by their lenders because they did not fully understand the terms of their adjustable-rate mortgages. If they had more knowledge about the terms and potential risks, they may have made a more informed decision and avoided financial hardship.

Many People Who Signed Up for Adjustable-Rate Mortgages During the Sub-Prime