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A Bank Might Make Mortgages to People in Different Regions

Question 87

Multiple Choice

A bank might make mortgages to people in different regions of the country.By doing so


A) the bank reduces the risk it faces from falling house prices in its region and falling prices in all regions.
B) the bank reduces the risk it faces of falling house prices in its region but not from falling prices in all regions.
C) the bank reduces the risk it faces of falling house prices in all regions,but not the risk it faces from falling house prices in its regions.
D) the bank reduces neither the risk it faces from falling house prices in its region nor falling prices in all regions.

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