Which of the Following Was True Regarding Sub-Prime Mortgages That

question 86

Multiple Choice

Which of the following was true regarding sub-prime mortgages that were popular in 2005-2006?

• A)More than 90% of these loans were made by regulated banks.
• B)Bankers expected higher default rates on these loans.
• C)They were generally fixed rate loans.
• D)all of the above

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company distributes to its shareholders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating ability of a stock.

Market Price

The current price at which a good or service can be bought or sold in the open market.