The housing bubble was created by all of the following EXCEPT a) the growth of CDO's b) the increase in sub-prime mortgage lending c) increase in the income and credit score requirements needed to secure a mortgage d) easy access to low-cost mortgages for all
The housing bubble was created by all of the following EXCEPT a) the growth of CDO's b) the increase in sub-prime mortgage lending c) increase in the income and credit score requirements needed to secure a mortgage d) easy access to low-cost mortgages for all
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The housing bubble was created by all of the following EXCEPT
a) the growth of CDO's
b) the increase in sub-prime mortgage lending
c) increase in the income and credit score requirements needed to secure a mortgage
d) easy access to low-cost mortgages for all
Expert Solution
Step 1 - Housing bubble
A housing bubble is an increase in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse.
Housing bubbles starts with an increase in demand, in the face of limited supply, which takes an extended period to replenish and increase.
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