By the height of the 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

Question

Quizplus · Accepted Answer

The term "sub-prime" refers to borrowers with flawed credit histories, while "Alt-A" refers to borrowers who did not document their incomes. These were the types of borrowers who were being granted mortgages during the height of the housing bubble. The other options listed are not relevant or accurate to the situation.

By the Height of the Housing Bubble in 2005 and Early