Subprime mortgages are
A) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages.
B) mortgages issued to borrowers with flawed credit histories.
C) mortgages which are bundled together by financial institutions and sold to investors.
D) government-backed mortgages issued by Fannie Mae and Freddie Mac.
B
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A U.S. company is attempting to cut costs by shifting some of its services to Thailand. This process of shifting production of products or services overseas to cut costs often results in
A) lower production quantities of those products or services. B) lower consumer prices on those products or services. C) greater potential for market failure for those products and services. D) greater economic uncertainty in the market for those products and services.
In a traditional economy, decisions about what to produce, how to produce, and who should get society's output are made by
a. the market b. the government c. repeating what was done in the past d. business firms e. nonprofit firms