Securitization refers to
A) changing the mix in a financial portfolio away from stocks and toward bonds.
B) selling directly to investors loans or securities that were formerly held by financial intermediaries.
C) banks insisting that collateral be supplied on previously unsecured loans.
D) reducing the exposure of a bank's portfolio to interest rate risk.
B
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In the 1850s, the proportion of silver in the currency supply fell, and the proportion of gold rose. This is an illustration of :
a. the quantity theory of money. b. Gresham's law. c. Say's law. d. the Walrasian auctioneer. e. none of the above.
The present discounted value of $100 to be received in one year and with an interest rate of 10 percent is closest to
a. $100 b. $10 c. $110 d. $91 e. $80
The federal funds rate is
a. the Fed's discount rate b. the difference between the discount rate that the Fed charges banks and the primerate that banks charge their borrowers c. the interest rate on loans made by banks in the federal funds market d. the interest rate on loans made by the Fed in the federal funds market e. the interest rate banks pay to the Fed for belonging to the FDIC
Which of the following would be most likely to cause the short-run aggregate supply curve to shift left?
A) A reduction in oil prices due to increased drilling. B) A decrease in investor confidence. C) A rise in government spending. D) A spike in food prices due to a drought.