- 04/14/2019 at 7:04 am #464482EduGorillaKeymasterSelect Question Language :
Directions: Read the given passage/argument and answer the question that follows it.
The Federal Insurance Corp, which acts as the guarantor for all bank deposits in the US, estimates that over 1.5 million households will eventually be unable to meet their loan repayments during the next 5 years. The prices are falling and more forced sales due to failure of loan repayments will increase the already burgeoning stocks of unsold houses, which currently number upwards of 5 million.
The conclusion given in the first line of the paragraph above is based on which of the following assumptions?
Post your Training /Course EnquiryAre You looking institutes / coaching center for
- More people are taking loans to finance their purchase of dwelling units.
- There will not be any significant change in the disposable incomes and liabilities of those taking home loans in the US.
- The Federal Insurance Corp. will remain the sole guarantor of all future home loans in the US.
- Defaults on account of inability to service home loan repayments will increase in the foreseeable future.
- There is, in general, a recession in the US economy and the housing sector just tends to mirror this overarching trend.
- IIT-JEE, NEET, CAT
- Bank PO, SSC, Railways
- Study Abroad