What are "mortgage-backed securities"?
A. Company stock shares for financial institutions that lend to home buyers.
B. Bonds backed by mortgage payments.
C. Treasury bills and savings bonds that banks sold to maintain liquidity during the mortgage
default crisis.
D. Insurance against mortgage loan defaults.
B. Bonds backed by mortgage payments.
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The price at which a good or service is traded on international markets is called the ________ price.
A. world B. market C. universal D. international
When a conflict arises in a major oil-exporting area of the world, such as the Middle East, the price of gasoline already in the storage tanks at local gas stations usually increases. Which of the following best explains this occurrence?
a. Gas station owners anticipate consumers will buy more gasoline as gasoline prices increase. b. Gas station owners are attempting to repeal the laws of supply and demand. c. Gas station owners anticipate higher replacement costs for their supply of gasoline and, therefore, raise their prices in response to this higher expected cost. d. A decline in consumer demand generally causes gas station owners to raise their prices.
Supply-side economists:
A. saw influence beyond in both the Bush and Clinton administrations. B. disagreed with economist Arthur Laffer's views on taxes. C. were influential in President Reagan's decision to change the tax structure. D. believe that government regulations do not reduce productivity and undermine industrial efficiency.
Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. If the countries engage in free trade, the price of food will
A. fall in Alpha and rise in Beta. B. fall in both countries. C. rise in both countries. D. rise in Alpha and fall in Beta.