Answer:
The Global Economic Crisis
Factors that led to the Mortgage Crisis include all:
A) Mortgages were accessible for borrowers who did not meet income and minimum down payment requirements. Moreover, the Fed kept interest rates really low to prevent a recession. This led to a decrease in the demand for homes and a further decline in housing prices.
B) The total amount of risk embedded in the securities created by bundling mortgages did not change. The securitization and resecuritization processes led to a distribution of total risk among different types of collateralized securities.
C) Mortgage payments based on short-term interest rates-called adjustable-rate mortgages (ARMs)—were preferred by subprime borrowers.
D) Rating agencies, such as Moody's and Standard & Poor's, earned fees from securitizing agencies for providing ratings for CDOs. The securitizing agencies were looking for higher ratings for their CDOs, and the rating agencies were earning fees. This led to a conflict of interest; thus, ratings did not reflect the true risk involved in the CDOs, which were backed by mortgages.
Explanation:
Hedge funds, banks, and insurance companies helped to cause the subprime mortgage meltdown while regulators looked the other way. They were given free rein to construct so many complex securities which somehow contributed to the mortgage defaults with financial institutions skimming fees during the securitization processes, and mortgages were made accessible for borrowers who did not meet the income and minimum down payment requirements.
The correct option is D.
Insurance sale agents are responsible for selling insurance policies to customers. They also gather and document information about the customers. Insurance underwriters are responsible for evaluating the risks and exposures of potential customers. An insurance accident investigator is responsible for investigating, analyzing and documenting suspicious claims or accident occurrence.
C. Restate the objection. Exchanging "price" for "value".
This is the standard that the government should protect consumers but that consumers are also expected to be responsible and stay informed.
Answer: $3,557
Explanation:
Maximum amount of credit for 2020 is $3,584.
The income credit is calculated by:
= Maximum amount - (Earnings for the year - Minimum phase out range for single person with one child) * phase out percentage.
= 3,584 - (19,500 - 19,330) * 15.98%
= $3,557
