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38) If a savings and loan (S & L) has a very low net worth position, most likely the S & L would
A. invest in conventional fixed-rate loans.
B. invest in variable-rate loans.
C. make and sell eligible loans to the FHLMC.
D. make equity-participation mortgages.
39) The _____ sector is the largest sector of the capital debt market.
A. corporate bonds
B. mortgages
C. state and municipal bonds
D. U.S. Treasury debt
40) Mortgages with private mortgage or government insurance
A. are likely to sell at lower prices and lower rates than comparable conventional mortgages.
B. are less likely to default than conventional mortgages.
C. offer the investor less default risk than conventional mortgages.
D. will be written under the credit standards of the originator, and not the standards of the agency or insurance company.
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