An "originate-to-distribute" strategy means:
a. Mortgage originators make loans with the intention of having investors purchase and hold them.
b. Mortgage originators make loans with the intention of keeping these assets on their balance sheets.
c.Innovative mortgage loans are more likely to be sold and distributed to investors' than standard, run-of-the-mill mortgage loans.
d. Originating loans is a lengthy process that requires originators to hold mortgages for longer periods than they want. Therefore, a strategy is needed for to distribute these loans as soon as the holding period is done.
.A
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Which of the following is descriptive of the law of diminishing marginal utility?
A) The third hamburger consumed provides less utility than the second hamburger consumed. B) The third hamburger is priced higher than the first hamburger. C) As price falls, quantity demanded rises, ceteris paribus. D) The price of a good rises as the costs of producing that good rise. E) none of the above
If a college enforces a new policy where anyone caught cheating is immediately expelled, the basic postulate of economics suggests that
A) the amount of cheating will be unaffected. B) any of the above is possible because student behavior is unpredictable. C) fewer students will attempt to cheat. D) cheating will be completely eliminated.
Applying neoclassical theory to the housing market, a higher marginal product of (housing) capital may be caused by ________
A) higher expected household income B) the inability to buy as much housing at a higher price C) an expected increase in the relative price of housing D) a decrease in the cost of building new houses
Which of the following might explain why the government would create a price ceiling for a certain good?
a. The equilibrium price that would result in the market would be considered too high b. The equilibrium price that would result in the market would be considered too low c. The equilibrium quantity that would result in the market would be considered too high d. The equilibrium quantity that would result in the market would be considered too low e. The government never has a reason to create price floors or price ceilings