Select the best choice that completes the question being asked. Open image in ne

Question

Select the best choice that completes the question being asked. Open image in new tab for easy viewing if needed. Provide correct solutions to questions will result in positive feedback. Questions pertain to Lecture 3: The Federal Reserve's Response to the Financial Crisis, https://www.federalreserve.gov/aboutthefed/educational-tools/lecture-series-federal-reserve-response-to-the-financial-crisis.htm.

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A "deterioration of lending practices" occurs when: lenders make more fixed rate long term loans lenders require larger down payments by borrowers o loans are provided to peopl who are unlikely to be able to repay O loans are made only to people who can prove they do not need a loan.

Explanation / Answer

First question is answered below

Correct option: (c)

Reason: Deterioration of lending practices occurs when banks or lenders give out loans to unworthy borrowers for the sake of lending money and make interest income. Such practices lead to losses in the long run when borrowers start to default on their payments. The same occured during the 2008 recession in US.

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