322-4

  1. In April 2009, the unemployment rate in the U.S. had climbed to nearly 11%, a number not seen in the previous 30 years.  

    A) True  
    B) False
    B) False
  2. A traditional mortgage contract requires 20% of the sale price of the house to be paid upfront by the borrower.  

    A) True  
    B) False
    A) True  
  3. CDOs are variants of the MBS and have pools of mortgages with several tranches designed to share risk among investors with differing risk preferences.  

    A) True  
    B) False
    B) False
  4. Investment banks are regulated by the Federal Reserve.  

    A) True  
    B) False
    B) False
  5. The proposed Consumer Financial Protection Agency would be designed to consolidate consumer protection in financial markets into one agency.  

    A) True  
    B) False
    A) True  
  6. The decline in the stock market and the housing market accounted for about _______ of the loss of the collective net worth of households between September 2007 and December 2008.  





    D) three-quarters  
  7. In 2007, the volume of new issues of mortgage-backed securities had risen to:  





    B) $7.27 trillion.
  8. A financial instrument that acts as "insurance" against default on a bond, but which does not require "insurable interest" by the purchaser in the entity being insured, is called:  





    A) a naked CDS.
  9. Assets with high levels of poorly-understood risk are known as:  





    C) toxic assets.
  10. Hidden risk that links many areas of a sector or economy together is called:  





    E) none of the above
Author
SAngell3
ID
222406
Card Set
322-4
Description
322-4
Updated