Final answer:
The statement concerning high ratio mortgages and time frames for approval is false. Various factors, such as economic conditions and government regulations, can impact the quantity of loans, either increasing or decreasing them.
Step-by-step explanation:
The statement that for a high ratio mortgage, approval by the lender and the insurer will not affect time frames is false. A high ratio mortgage typically requires approval from both the lender and the insurer, which can introduce additional steps and potentially longer processing times. Situations that can affect the quantity of loans include more people wanting to borrow, more people wanting to lend, and a favorable economic environment. For example, an increase in the number of home-buyers, growing confidence in the economy, and favorable regulations that make it cheaper and easier for banks to provide home loans, are all factors that can lead to an increased quantity of loans. Factors such as a firm's record of high profits can make a loan more valuable, as the likelihood of repayment is higher. Similarly, if interest rates in the economy have fallen, the value of a loan increases. Conversely, if banks experience higher default rates than expected, or there is economic uncertainty due to threats like war, the quantity of loans may decrease.