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The Federal Reserve Lowering Interest Rates from Mid­2000 to the End

Question 80

Multiple Choice

The Federal Reserve lowering interest rates from mid­2000 to the end of 2002 greatly increased the money supply; however, opportunities to invest yielded paltry returns leading bankers to offer _____ in order to earn a higher return.


A) revolving lines of credit
B) home equity lines of credit
C) fixed­rate mortgage loans
D) subprime mortgage loans

Correct Answer:

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