Final answer:
The extension of credit to borrowers who can't afford the terms being offered, with features designed to increase the likelihood of foreclosure, is true and refers to subprime loans.
Step-by-step explanation:
The statement is True. The extension of credit to borrowers who can't afford the terms being offered, with features designed to increase the likelihood of foreclosure, refers to subprime loans. These loans are offered to borrowers with lower credit ratings and feature higher interest rates than conventional mortgages to compensate for the increased risk of default. The 2008 recession was partly caused by the lending practices associated with subprime loans.