The sudden explosion of cheap and readily available mortgages encouraged people to:
A. buy bigger and better homes.
B. become less risk-averse.
C. securitize their investments.
D. become more risk-averse.
Answer: A
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The concept of odious debt implies
(a) an excessive debt. (b) a debt that is not the responsibility of the nation's people. (c) a large debt burden. (d) the total external debt of a nation's people.
Jim is planning on attending a football game. He paid $40 for the ticket. He will have to take the day off losing 8 hours of work. His hourly wage is $10 . He estimates it will cost him around $20 for gas and parking at the game. Jim's accounting (out of pocket) cost of attending the game equals
a. $80 b. $40 c. $60 d. $140
Which of the following goods is least likely to be provided by the private sector?
a. a good characterized by nonrivalry in consumption from which nonpaying customers can be excluded b. a good characterized by nonrivalry in consumption from which paying customers cannot be excluded c. a good characterized by rivalry in consumption from which nonpaying customers can be excluded d. a good for which the marginal private benefit to an individual exceeds the marginal cost of producing the good
The Law of Supply states that, other things being constant, when the price of a good increases then;
a) Supply and demand both decrease. b) Demand increases and supply decreases. c) The quantity demanded decreases. d) The quantity supplied increases.