Other Things the Same,which of the Following Would Both Make

question 172

Multiple Choice

Other things the same,which of the following would both make foreigners more willing to engage in U.S.portfolio investment?

• A)U.S.interest rates rise,the default risk of U.S.assets rise
• B)U.S.interest rates rise,the default risk of U.S.assets fall
• C)U.S.interest rates fall,the default risk of U.S.assets rise
• D)U.S.interest rates fall,the default risk of U.S.assets fall

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Definitions:

Securitization Entity's Credit Rating

A measure of creditworthiness assigned to entities that bundle and sell receivables or other financial assets in the form of securities.

Trouble Debt Restructuring

A process where the terms of a debt are modified due to the borrower's financial difficulties to provide relief.

Debt Terms

Debt terms refer to the conditions under which a loan or bond is issued, including interest rate, repayment period, and any other stipulations.

Mortgage Applications Fraud

Deliberate misrepresentation or omission of information on mortgage application forms to obtain a loan or more favorable loan terms.