Author Question: In 2008, the liquidity of mortgage-backed securities declined significantly. Make use of a graph of ... (Read 426 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?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

For a complete list of videos, visit our video library