During the Great Recession, securitization:
a. Permitted mortgage originators to shift the negative impact of their underwriting mistakes to investors.
b.Was one of the only sources of relief for investors who were suffering heavy losses on their mortgage investments.
c. Was one of the main strategies used by the Federal Reserve to cure the economic downturn.
d. Was caused by excessive money creation by the Federal Reserve immediately before and during the downturn.
e. None of the above.
.A
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Refer to Table 9-3. Assume the market basket for the consumer price index has three products — Cokes, hamburgers, and CDs — with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 75. B) 93. C) 108. D) 121.
The rate targeted by the Federal Reserve System as it conducts monetary policy is the ________
A) discount rate B) prime rate C) Treasury bill rate D) fed funds rate
Keynes and many of his contemporaries believed that money was
a. major importance because the idea of the liquidity trap only came later. b. even more important than fiscal policy. c. little importance and monetary policy of little use as a stabilization tool. d. major importance but of little use as a stabilization tool. e. none of the above.
If diversification is such a good idea for a saver, why do so many people put a lot of their savings in the same bank?
What will be an ideal response?