The ________ the down payment made by a borrower when taking out a mortgage, the ________
A) lower; lower the interest rate usually charged by the financial company issuing the mortgage
B) lower; more highly leveraged that borrower is on the mortgage
C) higher; more likely the mortgage-issuer will be faced with a mortgage default.
D) higher; greater the risk that the borrower will find herself upside down on the mortgage
B
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Which of the following statements describes the difference between real and nominal GDP?
A. Real GDP includes only goods; nominal GDP includes goods and services. B. Real GDP is measured using constant base-year prices; nominal GDP is measured using current prices. C. Real GDP is equal to nominal GDP less the depreciation of the capital stock. D. Real GDP is equal to nominal GDP multiplied by the CPI.
A financial asset is considered ________ if it can be bought or sold in a financial market
A) liquid B) a bond C) a security D) a stock