What is an alternative-A loan?
What will be an ideal response?
Between the prime and subprime sector is a somewhat nebulous category referred to as an alternative-A loan or, more commonly, alt-A-loan. These loans are considered to be prime loans (the "A" refers to the A grade assigned by underwriting systems), but they have some attributes that either increase their perceived credit riskiness or cause them to be difficult to categorize and evaluate.
You might also like to view...
During the course of an audit, misstatements that are individually immaterial may be detected. What should the auditor do with these?
a. Permanently pass on these immaterial misstatements as they do not individually impact the financial statements. b. Request that management footnote the immaterial misstatements in the financial statements for fair presentation. c. Accumulate all of the known and projected misstatements to determine if the impact is material in the aggregate. d. Roll them forward for three years when they will become material enough to adjust.
When determining the sample size, the standard deviation may not be known. Which of the following was not mentioned in your text as a way to estimate the standard deviation?
A) consult secondary sources B) estimate based on researcher judgment C) estimate from the mean D) conduct a pilot study
All of the following are questions that should be answered when evaluating the performance of corporate venturing efforts, except:
A. Does the venture add to the worth of the firm internally? B. Does the value proposition offered by the venture insulate it from competitive attack? C. Is the venture attracting external venture funding? D. Is the venture considered to be a market success?
A customer is injured using a company's product. The potential liability that may result is called a(n)
A) contingent liability. B) estimated liability. C) definitely determinable liability. D) estimated warranty liability.