Finance
What is 'subprime lending' and how did it affect Rhode Island during the housing crisis?
ALending below the prime rate
BLending to borrowers with poor credit at higher interest rates; during the 2007-2009 crisis, widespread subprime defaults caused foreclosures and home value declines across Rhode Island✓ Correct
CGovernment-subsidized lending for low-income borrowers
DCommercial real estate financing
Explanation
Subprime lending involves making mortgage loans to borrowers with poor credit histories at higher interest rates. During the 2007-2009 financial crisis, a wave of subprime defaults caused foreclosures, price declines, and economic hardship throughout Rhode Island.
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