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In Comparing the Traditional Way of Structuring Mortgages and the Newer

question 37

Multiple Choice

In comparing the traditional way of structuring mortgages and the newer structure of providing mortgages that securitized them and insured those securities with credit default swaps, it is clear that the ____ structure increased homeownership rates and that the ___ structure was safer to the health of the overall economy.


Definitions:

Cognitive Dissonance

The psychological discomfort experienced when holding contradictory beliefs, values, or attitudes, often leading to attitude change.

A-B Problem

This refers to a problem involving a comparison or differentiation between two distinct entities, A and B, often used in mathematical or logical contexts.

Stated Attitudes

Explicitly expressed opinions or beliefs that an individual communicates about a person, object, or concept.

Inconsistent Behaviors

Actions or reactions that do not align over time or in different situations, often leading to unpredictability.

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