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 histories or higher risk profiles. These loans have greater likelihood of default and played a central role in the 2008 financial crisis.