At what stage of the securitization process was moral hazard a major problem?
a. Mortgage origination.
b.Due diligence and mortgage servicing.
c. Rating securitized issues.
d. All of the above
.D
You might also like to view...
Keynes' theory of consumption predicts that the aggregate saving rate
A) increases as society becomes richer. B) falls as society becomes richer. C) is constant in the long-run. D) falls with higher incomes in a cross-section of income.
According to economists, how does an increase in the inflation rate affect the consumption function?
a. It shifts the function upward. b. It shifts the function downward. c. It causes movement upward along the function. d. It causes movement downward along the function. e. It has no predictable effect on the function.
A movement upward and to the left along a given demand curve is called a decrease in demand
a. True b. False Indicate whether the statement is true or false
Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S3?
A. a tax on wheat production B. a decrease in the price of wheat C. an increase in the price of wheat D. a subsidy for wheat production