Which of the following is a reason why the subprime mortgage market expanded significantly over the...

Question

Question

Which of the following is a reason why the subprime mortgage market expanded significantly over the period 2001-2007?

A. Population demographics changed and there were fewer prime borrowers.

B. The recession of 2001 resulted in a general decline in credit-worthiness of the population.

C. Subprime loan issuers earned large profits making loans and selling them to be packaged into CDOs.

D. Fannie Mae and Freddie Mac entered conservatorship the government and private companies began issuing mortgage-backed securities.

E. all of these

business economics

Answer 1

Answer #1

Answer 2

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