A Fundamental Problem with Goldman Sachs' GSAMP Trust Was That

question 8

Multiple Choice

A fundamental problem with Goldman Sachs' GSAMP Trust was that:

• A)Loans were given to people with poor credit histories
• B)Homeowners' equity in the securitized mortgages was less than 1 percent on average
• C)Loans were given to people with no income
• D)58 percent of the securitized loans had little or no documentation
• E)All of the above

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Definitions:

Reduced Levels

A general term indicating a decrease in quantity, intensity, or magnitude of a certain object, substance, or activity.

Tinnitus

A hearing condition characterized by the perception of noise or ringing in the ears when no external sound is present.

Phantom Sensation

the perception of feeling in a limb or other part of the body that has been amputated or is otherwise missing.

Auditory

Relating to the sense of hearing and the perception of sound.