Subprime mortgages are mortgage loans:
A. made to borrowers with low credit scores.
B. that have less than prime interest rates.
C. made to borrowers with higher than average credit scores.
D. made at lower than general market interest rates.
A. made to borrowers with low credit scores.
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Kandace is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property's location is called
A) physical deterioration. B) area preference. C) permanence of investment. D) immobility.
How is it logically possible for a monopolist to get different consumers to purchase different bundles on a menu (such as different sizes of coffee cups), and thereby achieve a form of price discrimination, even if the firm cannot observe the consumers' valuations directly? a. Different types of consumers have different tradeoffs between money and amounts of the good. b. The monopolist can use
a market-separation strategy. c. Social norms are powerful deterrents to lying about one's type. d. This is impossible: if one bundle is preferred by one type, logically it will be preferred by all.