When economists say that mortgages are "securitized" what do they mean by this description?
What will be an ideal response?
It means that the mortgage documents are pooled and then mortgage-backed securities are sold to investors who want to take different degrees of risk.
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The Keynesians argue that even if the interest rate does __________ in response to a decrease in investment, there is __________ guarantee that spending will increase very much
A) increase; no B) increase; a C) decrease; no D) decrease; a
Firms in a perfectly competitive market achieve both allocative and productive efficiency in the short run
a. True b. False
To move along a production possibilities curve from one point to another requires additional resources
Indicate whether the statement is true or false
____ is the income actually available to the consumers that determines aggregate demand
a. Nominal income b. Net domestic product c. Income corrected for depreciation d. Disposable income