Recall the Application. Securitization refers to
A) the practice of purchasing loans, repackaging them, and selling them to the financial markets.
B) the federal insurance received by home buyers to protect them from declining home values.
C) the process used by the Federal Reserve to insure home builders against bank failures.
D) the stocks and bonds used as collateral when one financial institution sells mortgages to another financial institution.
A
You might also like to view...
Which of the following is not necessary in order for a firm to engage in price discrimination?
a. The producer must face an inelastic demand curve. b. The producer must face a downward-sloping demand curve. c. There must be at least two identifiable classes of consumers with different price elasticities of demand. d. The producer must be able, at little cost, to distinguish between the different classes of buyers. e. It must be impossible for one buyer to resell to another.
When the supply curve of a resource is vertical, then the return to the resource owner is
A) zero. B) partly economic rent and partly opportunity costs. C) partly economic rent and partly profits. D) pure economic rent.