Author Question: Subprime mortgages are: a. Mortgages loans to individuals who have lower credit ratings than would ... (Read 67 times)

dejastew · **on:** Jun 30, 2018

Subprime mortgages are:
a. Mortgages loans to individuals who have lower credit ratings than would normally be approved by mortgage originators.
b.Mortgage loans that were correctly underwritten but encountered problems in the securitization process.
c. Mortgages that are healthy but not ready to be securitized.
d. Mortgages that carry interest rates below the U.S. prime rate.
e. None of the above.

Question 2

If there is an active surplus (+) of +30 billion and an actual deficit (-) of -40 billion, then:
a. The full employment deficit must be -70 billion.
b. The passive deficit (-) must be -10 billion.
c. The full employment deficit (-) must be -30 billion
d. The passive deficit (-) must be -70 billion.
e. The passive surplus (+) must be +40 billion.