When housing prices fall, as they do after a housing market bubble, most banks and other lenders ________ the requirement for borrowers, making it ________ for potential home buyers to obtain mortgages.

Question

Quizplus · Accepted Answer

When housing prices fall after a housing market bubble, banks and other lenders usually tighten their requirements for borrowers to mitigate their risk of default. This makes it harder for potential homebuyers to obtain mortgages. Therefore, the best choice is B, where "tighten" signifies stricter requirements and "harder" implies greater difficulty in obtaining mortgages.

When Housing Prices Fall, as They Do After a Housing