A sub-prime loan is a loan extended to borrowers
a. at a subsidized interest rate below the prime rate normally offered to the most creditworthy borrowers.
b. with blemished credit or limited documentation of their income, employment history, and other indicators of credit worthiness.
c. seeking a 30-year, fixed rate mortgage.
d. who have a FICO score above 660.
B
Economics
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Which of the following is not an example of market failure?
a. Extreme income inequality b. Externalities c. Efficient equilibrium d. Lack of competition
Economics
An external cost is borne by
A. Employees of the firm that produces the good. B. A third party to the market transaction. C. The consumers of the good. D. The producer of the good.
Economics