In the early 2000s,the government passed laws requiring banks and mortgage brokers to disclose the terms of home loans.This action by the government was an attempt to:
A) solve the information asymmetry problem, but did not work as intended.
B) solve the information asymmetry problem and led to an improvement in the housing market.
C) screen out risky or shady banks and mortgage brokers.
D) signal to consumers that the government cared about the value of their homes.

Question

Quizplus · Accepted Answer

The government's action aimed to address information asymmetry by ensuring borrowers had clear information about loan terms, but it did not fully prevent issues like the 2008 financial crisis.

In the Early 2000s,the Government Passed Laws Requiring Banks and Mortgage