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.

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Definitions:

Entrepreneurship

Willingness to take risks to create and operate a business.

Innovation

The process of creating, developing, and implementing new products, processes, or ideas to improve efficiency, effectiveness, or competitive advantage.

Aging Population

refers to the demographic trend of an increasing average age in a population, often resulting in higher proportions of elderly people and various social and economic implications.

Stagnating Wages

The phenomenon where wages remain constant over time without significant increases, often leading to decreased purchasing power due to inflation.