Subprime mortgages
A) are loans covered by reserve requirements of commercial banks.
B) are home loans backed by the Treasury.
C) are home loans given to individuals without credit to meet the loan requirements.
D) none of these choices.
Question 2
The mortgage crisis started to come to a head
A) when the Federal Reserve started to raise interest rates.
B) when government deficit started to grow at increasing rates.
C) when the Federal Reserve passed a law aimed at getting every American to own their own home.
D) a. and b. are true
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In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
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