Why did lending standards become more and more lax from 2000 to 2006? Created bySal Khan.

Missed the previous lesson? Watch here:

https://www.khanacademy.org/economics-finance-domain/core-finance/current-economics/housing-price-conundrum/v/housing-price-conundrum-part-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets

Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head.

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