Author Question: In 2008, the liquidity of mortgage-backed securities declined significantly. Make use of a graph of ... (Read 425 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
In 2008, the liquidity of mortgage-backed securities declined significantly. Make use of a graph of the bond market to show how this affected the price of mortgage-backed securities.
 
  What will be an ideal response?

Question 2

An order from an exchange for a seller to add enough funds to meet the minimum balance in a margin account is called:
 
  A) maintenance margin
  B) margin option
  C) margin call
  D) margin put



Ashley I

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

The lack of liquidity of mortgage-backed securities (MBS) led to a decline in the demand for MBS. As a result, there was a decline in the price of MBS.

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

For a complete list of videos, visit our video library