The bundling of mortgages together and the issuing of securities for their financing made it possible for investment banks to
a. reduce their exposure to risk in the event that the overall mortgage default rate rose.
b. reduce the amount of capital required to back these bundled securities.
c. build up large reserves so they would be able to meet their obligations even if the mortgage default rate rose substantially.
d. quickly access funds to meet short-term debt obligations.
B
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The more bowed the Lorenz curve, the
A) richer the society. B) more unequal the distribution of money income. C) poorer the society. D) more equal the distribution of income.
If demand is inelastic, the percentage change in price is greater than the resulting percentage change in quantity demanded
a. True b. False
Labor and capital are often complements in production because the use of capital enhances the productivity of the labor and vice versa
Indicate whether the statement is true or false
In the mid 1990s countries of the world exported $6.5 trillion dollars worth of goods and services. How large were total world imports of goods and services during this period? Explain your answer