As short-term interest rates began to rise in 2005, which one of the following mortgage loan categories experienced the largest increase in default and foreclosure rates?
a. fixed rate mortgages to prime borrowers
b. fixed rate mortgages to sub-prime borrowers
c. adjustable rate mortgages extended to both prime and sub-prime borrowers
d. adjustable rate mortgages to sub-prime borrowers only; the default and foreclosure rates of these loans extended to prime borrowers declined
C
Economics
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The purchase of less than 10 percent of the shares of ownership in a company in another country is known as
A) portfolio investment. B) an ineffective method for encouraging economic growth. C) foreign direct investment. D) a hostile takeover.
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The exchange rate is determined by the interaction of the supply and demand for currencies in which exchange rate system is:
A) fixed. B) flexible. C) all of the above. D) none of the above.
Economics