How are interest payments on mortgages distributed to investors who own mortgage-backed securities?
What will be an ideal response?
The banks that grants, or originates, the original mortgages will still collect the interest paid by the borrowers and send those interest payments on to the government agency or financial firm to distribute to the investors who have bought the mortgage-backed security.
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Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was
A) 20 percent. B) 2 percent. C) 16.6 percent. D) 1.6 percent.
If an insurance company hires a resource in a perfectly competitive resource market and it wants to maximize profit, it will hire where marginal revenue product equals
a. the price of the resource, which equals its marginal resource cost b. the price of the resource, which is greater than its marginal resource cost c. the price of the resource, which is less than its marginal resource cost d. marginal product e. the price of the product