The primary risk of mortgage-backed securities is ________
A) that the prices of have high volatility
B) that the prices of housing will increase
C) that the government will not be able to meet the guarantees on the cash flows
D) that homeowners may not be able to, or choose not to, repay their loans
D
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An extraordinary item can result from
a. a segment of the business being sold b. corporate income tax being paid c. a change from one accounting method to another acceptable accounting method d. a transaction or event that is unusual and occurs infrequently
As indicated by Maslow's need hierarchy, people may respond favorably to
a. appeals that focus on promises of best price and the need to find a bargain. b. appeals that fulfill physiological, security, and safety needs. c. appeals that fulfill social, ego, and self-actualizing needs. d. both b and c.
Which of the following goals are in the best long-term interest of shareholders?
A) Profit maximization B) Risk minimization C) Maximizing the market value of the existing shareholders' common stock D) Maximizing sales revenue
Prime Products, Inc found out that it was going to take three weeks to ship the comforter Margaret ordered instead of the seven days it had originally promised her. Prime Products must cancel Margaret's order and notify her that it can deliver within three weeks if she wants to reorder
Indicate whether the statement is true or false