What is the burnout effect?
What will be an ideal response?
The burnout effect refers to the incentive to refinance being "extinguished." This occurs because the composition of borrowers in a mortgage pool changes over time due to seasoning and refinancing patterns. More specifically, as mortgage rates decline, those borrowers in the pool who are the most interest-rate sensitive prepay. The balance of the borrowers in the pool are less rate sensitive but as mortgage rates continue to decline, these borrowers prepay. As mortgage rates continue down, there is less additional prepayment activity and at some point, the incentive to refinance is "burned out."
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If the debit amount of an adjusting entry adjusts an income statement account, the credit amount of the adjusting entry must adjust a____ _____ account.
Fill in the blank(s) with the appropriate word(s).
Brand ________ is the set of associations that consumers hold in memory regarding a brand's features, benefits, users, and perceived quality as a result of prior brand marketing activities
A) equity B) attitude C) valuation D) knowledge E) positioning