What is a mortgage? What were the important developments in the mortgage market during the years after 1970?
What will be an ideal response?
A mortgage is a loan a borrower takes to buy a house. Prior to 1970, mortgages were not considered securities — financial assets that are sold in secondary markets. After 1970 Congress helped to create a secondary market in mortgages in order to help the housing market. Congress created the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"). These institutions sell bonds to investors and use the proceeds to buy mortgages from banks and savings and loans. By the 1990s, these developments led to a large secondary market for mortgages.
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Which of the following is NOT a determinant of the demand for gasoline?
A. Consumers' incomes. B. The price of automobiles. C. The supply of gasoline. D. The price of diesel.
Which of the following is not a characteristic of a market with a price floor?
A. Quantity demanded exceeds quantity supplied B. Sellers offering discounts in disguised forms C. Problem of disposal created by excess supply D. Survival of less efficient businesses
What would happen if money did not exist?
When Scuba, Inc, lowered the price of a tank of compressed air by 20 percent, it sold 10 percent more tankfuls. The price elasticity for compressed air is
a. 2. b. 1/2. c. 1. d. 20.