What is securitization?
What will be an ideal response?
The term refers to financial instrument in which bank assets are repackaged in readily marketable forms. This kind of "derivatives," although useful for the international investors and the banks that underwrite them, causes huge problems in government abilities to monitor bank assets and independently assess their risk to the soundness of the international banking system.
You might also like to view...
Based on the figure above, as a result of international trade, producer surplus
A) increases by $150 million. B) decreases by $150 million. C) increases by $90 million. D) decreases by $90 million. E) remains unchanged.
The other-things-constant assumption
a. allows the economist to make useful predictions b. is a prediction c. applies only to consumers' decisions, not to those of firms d. forces the economist to ignore reality, where things are constantly changing e. implies rational self-interest on the part of all economic actors