Mortgage lenders often resell mortgages in secondary markets. How might this make lenders act differently than if they intended to hold the mortgages themselves?
What will be an ideal response?
Lenders would be more likely to grant mortgages if they intended to resell the mortgages than if they intended to hold them. Reselling reduces the risk of granting mortgages because lenders no longer need to worry that borrowers will default on their mortgage loans.
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A disadvantage associated with grouping jobs on the basis of functional specialty is that
A. managers tend to ignore the interdependencies among units that might lower a firm's value. B. managers rely on implicit understanding and informal relationships. C. employees have to seek ratification from managers for initiation and implementation of decisions. D. employees concentrate more on achieving departmental goals rather than customer satisfaction.
In the production possibilities framework, economic growth is depicted by the PPF
A) shifting leftward (toward the origin). B) shifting rightward (away from the origin). C) becoming a straight line rather than a bowed outward curve. D) becoming bowed outward rather than a straight line.
In a dynamic context, firms concentrate on:
A. long-run customers. B. short-run customers. C. short-run profit. D. long-run profit.
Policies which promote education are central to all of the following except:
A. increasing the capabilities of a society. B. economic development. C. federal reserve bank's interest rate policy. D. economic growth.