Fannie Mae and Freddie Mac's dominance of the secondary mortgage market during 1995-2008 encouraged mortgage originators to
a. extend only 30-year, fixed-rate mortgages.
b. require higher down payments in order to obtain a home mortgage.
c. loosen lending standards as long as the mortgages were acceptable to Fannie Mae and Freddie Mac.
d. scrutinize the credit-worthiness of borrowers more carefully.
C
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Which statement is accurate concerning the early history of globalization around the time of WWI?
a. In the decades before the war, international trade decreased steadily due to the colonial system. b. In the years after the war, rebuilding international trade was hampered most by the Nazi invasion of Europe. c. After the war, Great Britain's position was so strengthened that it could convince others to lower trade barriers. d. During the war, many trading relationships were destroyed, as trading partners became military adversaries.
Implicit cost is the opportunity cost of the inputs that do not require monetary payment.
Answer the following statement true (T) or false (F)
If price increases and the quantity purchased increases, we know that
A) supply increased. B) supply decreased. C) demand increased. D) demand decreased.
Which of the following characteristics of a competitive market make auction sites such as eBay so popular?
A) There is freedom of entry and exit. B) There are very low transaction costs. C) There are only one or two sellers. D) Buyers and sellers have complete information.