Subprime mortgages are:
a. Mortgages loans to individuals who have lower credit ratings than would normally be approved by mortgage originators.
b.Mortgage loans that were correctly underwritten but encountered problems in the securitization process.
c. Mortgages that are healthy but not ready to be securitized.
d. Mortgages that carry interest rates below the U.S. prime rate.
e. None of the above.
.A
You might also like to view...
Private solutions to externalities are most effective if ________
A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities
The required reserve ratio for a bank is set by:
a. Congress. b. the bank itself. c. the banking system. d. the Treasury Department. e. the Federal Reserve.