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Which of the Following Is Reported as a Financing Activity

question 93

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Which of the following is reported as a financing activity?


Definitions:

Housing Market

The supply and demand for houses, reflected in house prices and rent, and the transaction activity in residential property.

Leverage Ratios

The ratio of loans and other investments to the firm’s capital assets.

Mortgage-backed Securities

Financial instruments created by pooling mortgages and selling the rights to the cash flows from these mortgages to investors.

Secondary Mortgage Market

A market in which mortgages originated by a lender are sold to another financial institution. In recent years, the major buyers in this market have been Fannie Mae, Freddie Mac, and large investment banks.

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