The Tools That Were Intended to Allocate Funds and Spread

question 99

Multiple Choice

The tools that were intended to allocate funds and spread risk more efficiently in the housing market made it:

• A) easier to keep everyone fully informed.
• B) more difficult to keep everyone fully informed.
• C) easier to understand the true risk involved with these assets.
• D) more difficult to justify buying mortgage-backed securities over other low-risk assets.

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Definitions:

Cash Dividends

Distributions of a company's earnings to its shareholders in the form of cash.