The answer is, "They are mortgage loans granted to persons who might have low credit ratings." The question is:

A) What are traditional loans?
B) What are collateralized debt obligations?
C) What are subprime mortgage loans?
D) What are securitized loans?


C

Economics

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Economists who believe in activist policy making argue that

A) only planned changes in the money supply impact the economy. B) only increases in the minimum wage levels improve economic well-being. C) decreases in aggregate demand definitely impact the economy in the short run. D) decreases in aggregate demand impact the economy only in the short run.

Economics

Define potential GDP. Under what circumstances does actual real GDP fall short of potential GDP, equal potential GDP, and exceed potential GDP?

What will be an ideal response?

Economics

The development of new technology typically

a. shifts the supply curve to the right b. reduces profits c. results in a downward movement along a supply curve d. increases costs of production e. shifts the demand curve to the right

Economics

The accounting profits for a firm are 20% of output, and the opportunity cost of financial capital is 8% of output. Given this information, what are the firm’s economic profits?

a. 6% of output b. 10% of output c. 12% of output d. 8% of output

Economics