The introduction of the practice of securitization allowed:
A. the government to promote a sense of security in the banking industry.
B. borrowers to feel better about taking out subprime loans.
C. banks to more safely leverage their investments.
D. banks to more safely assume subprime mortgage loans.
Answer: D
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What is meant by "excess capacity"? How does it relate to consumer utility?
What will be an ideal response?
Unemployment insurance is:
A. money that is paid by the government to people who are unemployed. B. money that is paid to the government by employers who lay off employees. C. offered by the government as a way to affect the level of cyclical unemployment. D. offered by the government as a way to affect the level of seasonal unemployment.
Approximately what percentage of state and local expenditures do bond referenda account for?
A. 25 percent. B. 50 percent. C. 10 percent. D. Less than 1 percent.
Which of the following is true?
A. If capital is highly mobile, fiscal policy then loses its effectiveness under a fixed exchange rate. B. Fixed exchange rates encourage countries to have different goals, priorities, and policies with respect to macroeconomic variables. C. Countries that want to have a fixed exchange-rate regime should be willing to refrain from policy changes that lead to large international capital flows. D. For a floating exchange rate to work for a country, it cannot have an inflation rate that is much above the inflation rate(s) of its primary trading partners.