During the Great Recession, securitization:
a. Was a major problem because it prohibited mortgage originators from reducing their underwriting mistakes by shifting them investors.
b.Was one of the only sources of relief for investors who were suffering heavy losses on their mortgage investments.
c. Was a major cause of the moral hazard problem.
d. None of the above.
.C
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Why is a point below the production possibilities curve less efficient than a point on that curve?
What will be an ideal response?
What do economists mean when they state that a good is scarce?
a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature.