A Fundamental Problem with Goldman Sachs' GSAMP Trust Was That

question 10

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%, on average.
• C)loans were given to people with no income.
• D)a sizeable portion of the securitized loans had little or no documentation.
• E)All of the above

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Definitions:

UCC

Uniform Commercial Code, a comprehensive set of laws that govern commercial transactions in the United States, aimed at standardizing practices across states.

Counteroffer

A response to an offer in negotiations that presents different terms than originally proposed, effectively rejecting the initial offer.

Original Offer

The initial proposal or terms presented during negotiations or when making a deal, before any modifications are made.

Communicated By Words

Information or messages that are transmitted or conveyed through spoken or written language.