Answered: 1. What will happen to house prices if…

1. What will happen to house prices if banks stop giving mortgages? (B) go down; (C) stay unchanged; (D) any of A-C may happen (A) go up;

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter8: Subprime Lending Fiasco-ethics Issues

Section: Chapter Questions

Problem 6.1EC

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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

Give typing answer with explanation and conclusion

1. What will happen to house prices if banks stop giving mortgages?
(B) go down; (C) stay unchanged; (D) any of A-C may happen
(A) go up;

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