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12) 12) One contributing factor to the 2007-2009 financial crisis was the structuring of mortgage loans with: A) low initial
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Answer #1

CORRECT ANSWER IS OPTION A

EXPLANATION

A. IN DECEMBER 2001 FEDRAL FUND RATE WAS REDUCE TO 1.75% WHICH LED TO HUGE DEMAND OF HOME LOAN LATER RISE FFR CAUSE FINANCIAL CRISIS 2007

B. HIGH PAYMENT WOULD NOT LET DEMAND FOR LOAN TO RISE

C. HOME LOAN ARE LONG TERM LOANS

D. HIGH INITIAL PAYMENT WOULD NOT LET THE DEMAND OF LOANS TO RISE

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