What Was Developed in the Early 1980s to Offset Some

question 39

Multiple Choice

What was developed in the early 1980s to offset some of the problems with traditional mortgage pass-throughs?

• A) Variable rate mortgages.
• B) Collateralized mortgage obligations (CMOs)
• C) Leveraged buyouts (LBOs)
• D) Deep discount bonds (DDBs)
• E) High yield bonds.

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Definitions:

Marginal Rate

The rate at which something changes as an immediate result of a one-unit increase, often used in economics to describe tax rates or production costs.

Transformation

The process of changing or converting something from one form or state to another, often referring to industrial, business, or technological changes.

Economic Growth

The increase in a country's production of goods and services over time, indicative of a growing economy.

Technology

Implementing scientific insights for real-world applications, chiefly in the field of industry.