In events leading to the housing bubble, investment banks on Wall Street made money through the housing market by:
A. buying as many loans as possible to create mortgage-backed securities.
B. relying on banks to sell as few high-risk mortgages as possible.
C. ensuring local banks were making good loans.
D. offering low interest loans to those with very good credit.
A. buying as many loans as possible to create mortgage-backed securities.
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Which of these financial intermediaries is most likely to invest in new companies that are just starting up and have no track record?
A) Asset management companies B) Hedge funds C) Private equity funds D) Venture capital funds
Refer to the figure above. The triangular region BEC shows the ________ due to the price ceiling
A) gain in consumer surplus B) loss in consumer surplus C) gain in producer surplus D) loss in producer surplus