Asked by Demia Kelly on Apr 29, 2024
Verified
______ are loans made to borrowers with poor credit ratings.
A) Low value mortgages
B) Prime mortgages
C) Corporate mortgages
D) Subprime mortgages
Subprime Mortgages
are loans granted to borrowers with low credit scores, posing a higher risk of default.
Credit Ratings
Assessments made by credit rating agencies regarding the creditworthiness of an issuer of certain types of debt, including corporations and government entities, impacting interest rates and terms of loans.
- Acquire knowledge about the essential features and classifications of bonds.
Verified Answer
AS
anushka saxenaApr 30, 2024
Final Answer :
D
Explanation :
Subprime mortgages are loans given to borrowers who have lower credit scores or a limited credit history, indicating a higher risk to the lender.
Learning Objectives
- Acquire knowledge about the essential features and classifications of bonds.
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