The statements above most strongly suggest that if all subprime loan b

QUESTION

The statements above most strongly suggest that if all subprime loan borrowers had taken out the loan that was most appropriate for their needs, then what would follow?

A) None of them would have taken out an adjustable loan.
B) None of them would have taken out a subprime loan.
C) Most of them would have paid less in interest.
D) Most of them would have taken out a conventional loan to cover any expenses not covered by a subprime loan.
E) Most of them would have paid money at the start of the loan in order to get a reduced interest rate over the life of the loan.

ANSWER

Answer: C
Explanation: C) Subprime loans cost more than conventional loans, but most people who took out subprime loans could have gotten conventional loans. So if everyone got the most appropriate loan, most of the people who took out subprime loans would have gotten lower rates and therefore paid less in interest, Choice C. Choices A and B go too far. There might have been some people who were better off with these loans. Choices D and E are possible events, but there’s no evidence that either would have happened most of the time.