Subprime mortgage
What will be an ideal response?
a loan granted to individuals with poor credit histories who do not qualify for a conventional mortgage
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The last $2,000 of Rolanda's wealth adds less to her utility than the previous $2,000 . Based on this information, Rolanda has
a. increasing marginal utility of wealth and is risk averse. b. increasing marginal utility of wealth and is not risk averse. c. decreasing marginal utility of wealth and is risk averse. d. decreasing marginal utility of wealth and is not risk averse.
The term "surplus" refers to a:
A. market that sells secondary goods. B. situation in which the quantity supplied is less than the quantity demanded. C. situation in which the quantity demanded is less than the quantity supplied. D. signal that producers need to increase the price of the good.
Refer to the accompanying figure. It is efficient for this farmer to:
A. grow 1,000 bushels of wheat and 500 bushels of corn. B. grow 250 bushels of wheat and 500 bushels of corn. C. grow 500 bushels of wheat and 500 bushels of corn. D. grow 500 bushels of wheat and 250 bushels of corn.
The "interest-only" mortgage typically converts later to a
A. traditional mortgage with a higher payment. B. traditional mortgage with a lower payment. C. "exotic" mortgage with a lower payment. D. "negative-amortization" mortgage with a lower payment.