By the height of the U.S.housing bubble in 2005 and early 2006, lenders had greatly loosened the standards for obtaining a mortgage loan, with many mortgages being granted to ________ borrowers with flawed credit histories and ________ borrowers who did not document their incomes.
A)sub-prime; "Alt-A"
B)adjustable rate; shadow-banking
C)"credit crunch"; black market
D)"fresh-start"; prime rate
E)domestic; foreign

Question

Quizplus · Accepted Answer

The given passage talks about the loosening of standards for obtaining a mortgage loan, which led to granting mortgages to sub-prime borrowers with flawed credit histories and "Alt-A" borrowers who did not document their incomes. Therefore, option A is the correct answer. Options B, C, D, and E do not accurately reflect the situation described in the passage.

By the Height of the U