The Driving Force Behind the Securitization of Mortgages and Automobile

question 65

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 computer technology.
• D) the relaxation of regulatory restrictions on credit card operations.

---

Definitions:

Shearing at Depth

Deformation of rock and soil layers deep within the Earth's crust caused by lateral movement or stress.

Low Pressure

A condition in the atmosphere where the air pressure is lower than the surrounding area, often associated with stormy weather and precipitation.

High Temperature

A condition or state of having a temperature significantly above the norm or average, often associated with specific geographical areas, processes, or reactions.

Metamorphism

The process by which the mineral composition and structure of a rock are changed by heat and pressure, resulting in metamorphic rock.