The practice of approving mortgages in order to sell them as mortgage-backed securities is known as ________

Given a required reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of

A) $400. B) $0. C) $20. D) $80.

Suppose your bank account pays a 4% interest rate. You are considering purchasing a share of stock in ABC Corporation for $500 . The stock will pay you a $10 dividend at the end of years 1, 2, and 3 . You expect to be able to sell the stock at the end of year 3 for $550 . Is ABC a good investment? Provide evidence to support your answer