Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. In this example, what signal do potential homeowners give to indicate they are low-risk?
A) indicating high income
B) buying an expensive home
C) having a large down payment
D) buying an inexpensive home
C
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Which of the following is not an example of a commercial bank's liabilities?
a. Checking account deposits. b. Any type of demand deposit. c. Loans. d. a and b. e. None of the above.
The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by
a. unstable economic conditions in Eastern Europe. b. increased competition from abroad. c. a decline in the rate of increase in U.S. productivity. d. a strong U.S. dollar abroad, hurting U.S. exports.
What set of all possible combinations does the budget line show?
A. The set of all possible combinations that yield the same level of utility to the consumer. B. The set of all possible combinations that maximize a consumer's utility. C. The set of all possible combinations that can be purchased, given the consumer's income and the price of the goods. D. The set of all possible combinations that are equilibrium points.
Which statement concerning the kinked demand curve model of oligopoly is false?
A. It addresses the question of price "stickiness." B. It assumes when one oligopoly raises the price, all others will follow. C. The portion of the demand curve above the "kink" is more elastic than the portion below. D. The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output.