The practice of approving mortgages in order to sell them as mortgage-backed securities is known as ________
A) originate-to-distribute
B) principal-agent engineering
C) predatory lending
D) a credit default swap
A
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The HPAE focused their education spending on the university level to better develop high technology workers
Indicate whether the statement is true or false
Suppose that Mr. Chopp withdraws $500 from his checking account. If the reserve requirement is 5 percent, what will be the maximum potential change in the money supply forthcoming from Mr. Chopp's transaction?
a. $10,000 b. $500 c. $0 d. -$500 e. -$10,000
The free-rider problem arises when: a. goods cease to be scarce
b. goods are produced by the government. c. goods can't be provided exclusively to paying customers. d. the marginal benefit to a private individual outweighs the marginal cost of producing a good.
Answer the following statement true (T) or false (F)
1) The interest-rate cost-of-funds curve is perfectly elastic because firms can borrow as much or as little as they want at market interest rates. 2) The interest-rate cost-of-funds curve is perfectly elastic because expected rates of return on R&D are constant. 3) Large, well-established firms are more likely to use retained earnings to finance R&D, while small start-up firms are more likely to rely on venture capital. 4) Kara's Kettles, Inc. has developed a new and improved type of cookware. Alex, a typical consumer, will necessarily purchase Kara's new product if his MU/P for the new cookware exceeds that of competing products. 5) According to the inverted-U theory of R&D, other things equal, firms in industries with concentration ratios around 10 percent will be more technologically progressive than firms in industries with 50 percent concentration ratios.