The emergence of mortgage-backed securities provided mortgage brokers with an incentive to seek out only the most creditworthy borrowers
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is a characteristic of monopoly?
A) The firm faces competition from many other firms. B) The firm produces a product that has many close substitutes. C) There are barriers to enter the market. D) The firm's demand is perfectly elastic. E) The firm produces a product identical to that produced by its many competitors.
All of the following are problems cited by Warren Buffet as problems with derivatives not traded on exchanges EXCEPT
A) they are thinly traded which makes it difficult to determine their value. B) firms do not set aside reserves against potential losses. C) they involve substantial counterparty risk. D) they were not flexible enough due to lack of standardization.