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In the context of the global economic crisis, _____ are defined by experts as loans to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repay the money they borrow.

Respuesta :

Answer:

The correct answer is subprime mortgages.

Explanation:

Subprime mortgages are loans that are provided to those individuals who have low credit scores. These individuals do not qualify for conventional mortgages because of low credit score. They may have a high debt to income ratio or other signs showing a higher risk of default. A higher interest rate is charged on these loans.

Defaults on subprime loans have been blamed for the financial crisis of 2008.

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