Securitization, the process of forming new securities by bundling or slicing up groups of securities like mortgages and bonds, is:
A. A way of reducing risk though diversification
B. Well-understood by financial analysts and managers who engaged in it
C. Considered shady by legitimate financial institutions
D. Still only a minor portion of the modern financial system
A. A way of reducing risk though diversification
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Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Morocco gain compared to the "without trade" numbers?
A) 0 B) 15 C) 60 D) 75
Historically, price discrimination was considered illegal in all instances. More recently, antitrust authorities have discovered that
A) price discrimination can increase the coverage of a market thereby increasing welfare. B) price discrimination limits the coverage of a market thereby increasing welfare. C) price discrimination limits the coverage of a market thereby decreasing welfare. D) price discrimination can increase the coverage of a market thereby decreasing welfare.
The share of GDP going to federal taxes
a. has been about 16 to 20 percent for the past 40 years. b. has been about 35 percent for the past 40 years. c. was about 40 percent until the early 1980s and has dropped greatly since then. d. has risen steadily in the past 40 years to about 35 percent.
In a 2007 New York Times article Paul Krugman wrote that
a. the infant-industry argument works well as an argument in favor of protection for the U.S. steel industry. b. the negative effects of third world exports on U.S. wages may be increasing. c. there are social gains to the U.S. from free trade. d. high wage countries account for a growing share of U.S. imports of manufactured goods.