Collateralized default swaps:
A. helped reduce the losses from the mortgage default crisis.
B. involve exchanging high-risk mortgages for low-risk mortgage-backed securities.
C. are loans to investors in mortgage-backed securities.
D. insured holders of loan-backed securities in case the underlying loans were not repaid.
D. insured holders of loan-backed securities in case the underlying loans were not repaid.
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The natural rate of unemployment worsens if:
a. Actually, the natural rate cannot worsen. That's why it's called "natural." b. Capital markets become more competitive. c. A nation's resource endowments expand. d. Unemployment benefits drastically improve. e. Real wages become more flexible.
In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in a
A. shortage of 15 units. B. surplus of 30 units. C. surplus of 12 units. D. shortage of 30 units.
The consumer optimum is found by using
A) marginal utility. B) total utility. C) total utility minus marginal utility. D) total utils.
Suppose that real GDP increases by 5% while the population of a country increases by 7%. Then:
A. Output per person necessarily increases B. Output per person necessarily decreases C. Output per person necessarily remains unchanged D. There is not enough information to determine what happens to output per person