The answer is, "They are mortgage loans granted to persons who might have low credit ratings." The question is:
A) What are traditional loans?
B) What are collateralized debt obligations?
C) What are subprime mortgage loans?
D) What are securitized loans?
C
You might also like to view...
The government raises gasoline taxes as part of the price of gasoline and receives more tax revenues. However, after five years, the government discovers that revenues from the gasoline tax have declined
This situation would be most likely to occur if A) the long-run elasticity of supply was much greater than the long-run elasticity of demand. B) the demand for gasoline was inelastic in the short run, but elastic in the long run. C) the long-run elasticity of demand was greater than the long-run elasticity of supply. D) the demand for gasoline was perfectly inelastic in both the short run and the long run.
If the punishment is _________, or the likelihood of getting caught is _________, the cost associated with breaking a ban may not be high enough to change the trade-off that consumers face.
A. not severe; low B. severe; high C. severe; low D. not severe; high