The Driving Force Behind the Securitization of Mortgages and Automobile

question 21

Multiple Choice

The driving force behind the securitization of mortgages and automobile loans has been

• A)the rising regulatory constraints on substitute financial instruments.
• B)the desire of mortgage and auto lenders to exit this field of lending.
• C)the improvement in information technology.
• D)the relaxation of regulatory restrictions on credit card operations.

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Definitions:

Write-off

The accounting action of recording an asset as having little or no future service potential, resulting in it being deducted from one's financial statements.

Expected Count

The anticipated frequency or number of occurrences of an event in statistical hypothesis testing.

Economic Concerns

Issues related to the financial health and stability of an economy, including inflation, unemployment, and GDP growth.

Housing

The provision of shelter or accommodation, including the structures and related policies that determine how residential spaces are built, allocated, and governed.