Author Question: In 2008, the liquidity of mortgage-backed securities declined significantly. Make use of a graph of ... (Read 419 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?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

For a complete list of videos, visit our video library