The process of bundling loans together and buying and selling these bundles in a secondary financial market is called
A) seigniorage. B) securitization.
C) open market operations. D) fractional reserve lending.
B
Economics
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If a salesperson is paid by the volume of sales he or she makes, then the
A) moral hazard problem is diminished. B) moral hazard problem is enhanced. C) adverse selection problem is enhanced. D) None of the above answers is correct.
Economics
The arrival of inexpensive information technology, such as personal computers and inexpensive telecommunications:
a. discouraged de-integration. b. increased the optimal size of firms. c. shifted the long-run average cost (LRAC) curve of firms downward. d. shifted the marginal cost of firms upward.
Economics