Which of the Following Was NOT a Problem That Had to Be

question 28

Multiple Choice

Which of the following was NOT a problem that had to be overcome to develop a secondary mortgage market?

• A)Mortgages are typically too small to be of interest to institutional investors.
• B)Mortgages were not standardized.
• C)Mortgage interest rates were too low.
• D)Mortgages are difficult for an institutional investor to analyze.

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Definitions:

Inventory Destroyed

Inventory destroyed refers to stock that has been lost, damaged beyond repair, or otherwise rendered unsellable, and must be written off as a loss.

Perpetual Inventory System

A continuous tracking method for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

LIFO

Last In, First Out, an inventory accounting method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

Products' value that is available for transaction at the culmination of an economic period.