When Might an IO Mortgage-Backed Security Exhibit a Price Increase

question 29

Essay

When might an IO mortgage-backed security exhibit a price increase when interest rates increase?

Distinguish between civil and criminal law, as well as public and private law, in the context of legal disputes.

Identify and explain the purposes of legal rules and the role of law in society.

Apply critical-thinking skills to legal issues and case analysis.

Know where to find applicable laws for specific legal problems and the hierarchy of law sources.

---

Definitions:

Free Will

The ability to choose between different possible courses of action unimpeded.

Continuous Reinforcement

A learning process in which a behavior is reinforced each time it is exhibited, leading to quicker acquisition of the behavior.

Intermittent Schedule

A reinforcement schedule in which rewards or consequences are given out at irregular intervals to modify behavior.

Free Will

The ability of agents to make choices free from certain kinds of constraints, a concept often debated in philosophy and psychology.