All of the following are benefits of securitization EXCEPT
A) risk sharing.
B) reduced interest rates that borrowers pay on loans.
C) increased liquidity.
D) fewer adverse selection problems.
A
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The underground economy—the informal sector—can be a significant drag on the economies of developing countries. Why are firms in the informal sector often less efficient than firms in the formal sector?
What will be an ideal response?
Consider four possible benefits of a water resources project: I. Provides employment to construction workers currently building houses. II. Provides electric power to the market. III. Provides reduced flood risk to individuals living along the river. IV. Raises the profits of MacDonald's stands in the area which serves construction workers. Which of these are true social benefits of the project?
a. All of them b. I, II, and III, but not IV c. I and III, but not II and IV d. II and III, but not I and IV
How much did the median wage for college graduates increase over the last two decades?
a. 10% b. 12% c. 14% d. 16%
Suppose an economist is analyzing the impact of a budget deficit used to finance a significant infrastructure project that will pay significant dividends in the coming years. That economist will focus on
A. strictly the inflation-adjusted amount borrowed. B. strictly the amount borrowed. C. both the ratio of the deficit to GDP and whether what is purchased with the borrowed money will produce enough gains to be worth that borrowed. D. strictly the ratio of the deficit to GDP