Quiz On Subprime Mortgage Crisis, Part 1

5 Questions | Total Attempts: 139

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Quiz On Subprime Mortgage Crisis, Part 1 - Quiz

Test your knowledge of the root of the subprime mortgage crisis from our recent podcast. If you need a refresher, the link is www. Finlit101. Blogspot. Com


Questions and Answers
  • 1. 
    You want to a buy a house and are looking for a mortgage  How will your credit score affect the terms of your mortgage?
    • A. 

      With a good credit score, the bank will offer me a higher interest rate on a mortgage

    • B. 

      With a good credit score, the bank will offer me a lower interest rate on a mortgage

    • C. 

      My credit score has no bearing on the interest rate of bank will offer me on a mortgage.

  • 2. 
    What does the term ARM mean?
    • A. 

      Absolutely real mortgage

    • B. 

      Adjustable rate mortgage

    • C. 

      Actual rate of mortgage

  • 3. 
    In the height of the subprime mortgage boom,  certain banks realized giving subprime mortgage business was very profitable so they __________ their standards for mortgage applicants.
  • 4. 
    The subprime mortgage crisis was one of the main reasons for the situation we have today in the U.S. _______________.
  • 5. 
    Another factor impacting the subprime mortgage crisis was
    • A. 

      Wall Street

    • B. 

      The Federal Reserve

    • C. 

      Foreign banks.

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