The GFC Has Greatly Reduced the Amount of MBSs Issued

question 45

Multiple Choice

The GFC has greatly reduced the amount of MBSs issued in the Australian bond market because:

• A)it became apparent that Australian MBSs did not deserve their high rating
• B)of high levels of non-performing loans
• C)of the weakness of the Australian economy
• D)these securities funded non-performing loans in the US
• E)of the loss of investor interest in MBSs resulting from the losses incurred on US MBSs.

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Definitions:

Passionate

Having, showing, or caused by strong feelings or a strong belief.

Attention-Seeking

Behavior aimed at attracting notice and acknowledgment from others, often due to a desire for validation or affection.

Ludus

in the context of love, refers to a playful, uncommitted love style that values fun and freedom over deep emotional attachment.

Casual

Describing something that is relaxed and unconcerned, or an event or clothing that is informal.