Finance
Vermont's 'subprime mortgage' market led to the 2008 financial crisis partly because:
AVermont had stricter lending than other states
BLax underwriting standards and lack of borrower qualification allowed high-risk loans that defaulted at high rates✓ Correct
CVermont's property values did not decline
DVermont banks did not participate in subprime lending
Explanation
The 2008 financial crisis was partly caused by loose underwriting standards for subprime (high-risk) mortgages nationally, which led to widespread defaults when borrowers could not sustain payments. Vermont was less severely affected than many states due to its smaller market and more conservative lending culture.
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