When the housing bubble occurred it can be attributed to all of the following except:
A) people expected housing prices to continue to rise.
B) it became easier to leverage more of a home's value, putting buyers more into debt.
C) the seller of the mortgage had lost incentive to properly assess the risk.
D) homeowners lack of confidence in the institutions who made the loan to them.
Correct Answer:
Verified
Q49: Local banks could pass the risk involved
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Q71: The practice of securitization of mortgages:
A) pooled
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Q74: By 2006, 20 percent of the mortgage
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