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Author Question: At what stage of the securitization process was moral hazard a major problem? a. Mortgage ... (Read 38 times)

bobthebuilder

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At what stage of the securitization process was moral hazard a major problem?
 a. Mortgage origination.
  b.Due diligence and mortgage servicing.
  c. Rating securitized issues.
  d. All of the above

Question 2

When the supply of real loanable funds is upward-sloping and the demand for real loanable funds rises, complete crowding-out:
 a. Occurs because private demand falls by the same amount that government borrowing rises.
  b. Does not occur because taxes rise with the increase in real GDP.
  c. Does not occur because new funds are supplied to the Real Loanable Funds Market as the real, risk-free interest rate rises.
  d. Occurs because private borrowers will increase the amount their loans as the real risk-free interest rate rises.



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Missbam101

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Answer to Question 1

.D

Answer to Question 2

.C




bobthebuilder

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


Jsherida

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Reply 3 on: Yesterday
Excellent

 

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