Multiple choice general knowledge

A loan with high chances of default is categorised as

  1. pre foreclosure

  2. sub prime

  3. fore closure

  4. mortgage
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Subprime loans are loans given to borrowers with poor credit history or high debt-to-income ratios, who have a higher likelihood of defaulting. The 2008 financial crisis was triggered by widespread default on such loans, making this term essential knowledge in understanding modern economic history.

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