Which of the following hindered the development of a secondary market for mortgages in the early 20th century? Check all that apply.Institutional investors were not interested in small non-standardized financial instruments.Institutional investors avoided dealing with financial instruments backed by the federal government, such as mortgagesInstitutional investors could not assess the default risk of every single mortgageIt was impossible to turn illiquid assets such as real estate into liquid financial instruments.Which of the following helped foster the development of a market for collateralized debt obligations (CDOs) and collateralized mortgage obligations(CMOS) in the 2000er Check all that apply.Estashment of the Government National Mortgage Association (Ginnie Mae) and the Federal Home Loan Mortgage Corp (Freddie Mac)Establishment of the Federal National Mortgage Association (Fannie Mae)Inflows of foreign capitalDevelopment of mathematical models to price CDOS and CMOS

All of the options listed hindered the development of a secondary market for mortgages in the early…

Answered: Which of the following hindered the…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Similar questions

Which ones of the following are primary market transactions? (mark all that applies) ✔ An initial public offering (IPO) of company's securities. Stock ownership transfer from one shareholder to another shareholder Gift of stock from one shareholder to another shareholder Sale of a new share of stock to an individual investor Sale of currently outstanding stock by a dealer to an individual investor Gift of stock by a shareholder to a family member
Freida, who lives in Covington, Louisiana purchased three bonds from a company based in Brazil that were yielding 9.75% and paid a 12% coupon, semi-annually. The company went bankrupt and Freida never received her money. What type of risk caused Freida's loss? Interest rate risk. Default risk. Exchange rate risk. Executive risk.
Determine the collateral you have that may help you secure a loan from a bank, credit union or other sources of debt financing (home, car, equipment, land, stock, assets of a cosigner, etc.) Identify a source of debt financing that may be available to you (friends, family members, credit cards, trade credit, banks, credit unions, private lenders, etc.). Describe the type of loan (term loan, promissory note, line of credit, SBA, etc.), the amount of money that might be available, the possible interest on the loan, and the security that might be required. Identify a potential partner or firm that might provide equity financing for your new business. What types of businesses do they like to invest in? How much money do they typically invest in each deal? At what stages of the business do they generally invest? Why would they be a good partner for your business? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer…
What is the name of the clause that permits the lender to declare the entire unpaid balance immediately due and payable upon default? O The defeasance clause O The acceleration clause O The alienation clause • The lis pedens
Which of the following can be categorized as Short term sources of finance? i Equity Shares ii. Trade Credit iii Debenture iv Money Market Instruments O 3. Both Equity Shares and Debentures O B. Both Money Market Instruments and Trade Credit Only Money Market Instruments O d. Only Equity Shares
Mortgage-Backed securities were one of the so-called toxic assets to come from the 2008 financial crisis. They were not well understood nor did anyone (or very few people anyway) know the depth and extent of their impact. Why were they bad? What triggered all of the misery that followed? That is why did these instruments not work as advertised?
Describe the basic features of each of the following types of bonds: Mortgage bonds Debentures Subordinated debentures Equipment trust certificates Collateral trust bonds Income bonds Explain the differences between par value, book value, and market value per share of common stock. Discuss the various stockholder rights.
109 Which of the following loan types may be considered a qualified loan under ability-to-pay rules? A) An interest-only mortgage B) A loan with a balloon payment C) A loan with negative amortization D) A mortgage with an adjustable rate
Governance Risk and Compliance 1. One major problem that led to the financial crisis of 2007/2008 was that there was no articulation of risk appetite or identification of those responsible when risks were incurred. Discuss the risk appetite of banks and explain how four groups (debt holders, shareholders, regulators and governments) impact differently on the determination by the Board of Directors of a bank of the appropriate risk appetite. 2. Define the concept “Governance, Risk Management and Compliance” (GRC) and discuss the benefits of this approach to companies
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You participated in a pump and dump scheme. Later on a representative from the Securities and Exchange Commission contacts you and requests details in respects to a trade of ABCD shares and other info about the account. According to the CFA Ethic Code and Standards: a. You have not violated the integrity of Capital Markets and should disclose the requested information. b. You violated the integrity of Capital Markets and should disclose the requested information. c. you have violated the integrity of Capital Markets and should not disclose the requested information.

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