Question

Which of the following best describe the collapse of the housing market in 2006–2007? Check all...

Which of the following best describe the collapse of the housing market in 2006–2007? Check all that apply. The collapse of the stock market Historically low interest rates Rising housing foreclosures Rising interest rates

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct answers are -

1. Rising Housing Foreclosures

2. Rising Interest Rates

Explanation -

Interest rates in the United States started to rise with effective federal fund rate increasing from 1% in January 2004 to 5.25% in September 2006. This translated into relatively tight credit market conditions and the housing boom was driven by availability of easy money. At the same time, housing foreclosures increased by nearly 40% in 2006 as compared to 2005 and the foreclosures continued to surge in 2007. This translated into bad loans, decline in home price and therefore further increase in non-performing assets.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What will be the impact on the U.S. residential housing market equilibrium price and quantity, if...
What will be the impact on the U.S. residential housing market equilibrium price and quantity, if the interest rate is kept at a historically low level but the unemployment rate is still high? Based on your answer, what will be the impact on the U.S. real GDP? Please indicate which macroeconomic model (classical, Keynesian, monetarist, or rational expectation) will support your answer.
9. The CPI-U (U.S. city average, all items) has the following annual averages: YEAR INDEX 2006...
9. The CPI-U (U.S. city average, all items) has the following annual averages: YEAR INDEX 2006 201.600 2007 207.342 2008 215.303 2009 214.537 2010 218.056 a. For each year from 2007 to 2010, determine the annual inflation rate in percent to three decimal places. b. Since inflation, like interest, is compounded from period to period (e.g., year to year), estimate the overall annual inflation rate per year from 2006 to 2010. Suggestion: Do not simply average the rates of Part...
Please answer all parts of problem :) a) The best way to describe a primary market...
Please answer all parts of problem :) a) The best way to describe a primary market transaction will be which of the following? Choose the correct answer: ABC company sold 5000 of its shares in a new stock issue to a Pension fund directly Steven sold 1000 shares to his best friend Sally Susan sold 10,000 shares to her relative Charles purchased 4000 shares directly from his father The president of the company sold 3000 of his personal shares to...
Which of the following generally cause liquidity crises? assets no longer match liabilities stock market collapse...
Which of the following generally cause liquidity crises? assets no longer match liabilities stock market collapse irrational panic on the part of the banking public bank runs
The loanable funds theory can best be described as involving: (Check all that apply) a. Using...
The loanable funds theory can best be described as involving: (Check all that apply) a. Using investor risk-aversion to infer an appropriate interest rate. b. Credit risk which affects the demand for funds. c. The legal frictions that can encourage or discourage borrowing. d. The supply and demand for funds.
Positive externalities can be corrected by which of the following? (Check all that apply.) A. Government...
Positive externalities can be corrected by which of the following? (Check all that apply.) A. Government subsidies paid to producers who create positive externalities. B. Government taxes imposed on producers who create positive externalities. C. Normal market adjustments. D. Charity.
A) In uniform circular motion, which of the following quantities are constant? Check All that Apply,...
A) In uniform circular motion, which of the following quantities are constant? Check All that Apply, (instantaneous velocity, the tangential component of velocity, the tangential component of acceleration, the radial component of acceleration, speed) B) Which of these quantities are zero throughout the motion? Check all that Apply, (instantaneous velocity, the tangential component of velocity, the tangential component of acceleration, the radial component of acceleration, speed)
The market value of an asset is _____. Check all that apply: -usually the same as...
The market value of an asset is _____. Check all that apply: -usually the same as the book value -usually greater than the book value -usually lower than the book value -the price at which the asset can be sold
Which of the following anions act as a weak base in solution? Check all that apply....
Which of the following anions act as a weak base in solution? Check all that apply. Br- NO2- C2H3O2- Cl-
Which of the following are assumptions of the self-supporting growth model? Check all that apply. The...
Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm pays out a constant proportion of its earnings as dividends. The firm uses all equity and no debt financing. The firm must issue the same number of new common shares that it issued last year. The firm will not issue any new common stock next year.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT