Author Question: The phenomenon that some consumers pay a higher interest rate when they borrow than the interest ... (Read 45 times)

cookcarl · **on:** Jun 30, 2018

The phenomenon that some consumers pay a higher interest rate when they borrow than the interest rate they receive when they lend is best described as an example of

A) irrational behavior.
B) a credit market imperfection.
C) a vast banking conspiracy.
D) the burden of public debt.

Question 2

Instruments which provide payments to holders of bonds in the event of default are known as ________.

A) collateralized bond obligations
B) tertiary payment devices
C) credit default swaps
D) mortgage-backed securities