Explain How Interest Rate Risk Could Change at Banks,thrifts,and Other

question 28

Essay

Explain how interest rate risk could change at banks,thrifts,and other institutions that originate and sell fixed-rate mortgages but are funded with deposits if these institutions lose the ability to securitize and sell mortgages. What could be the effect on the economy?

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Definitions:

Universal Basic Income

A governmental public program for a periodic payment delivered to all citizens of a country or to a segment of the population, without a requirement to work or to demonstrate readiness to work.

Benefits

The positive outcomes or advantages that result from actions or decisions, often considered in terms of economic or personal gain.

Detractors

Individuals or entities that actively express criticism or disapproval, often working to decrease support or enthusiasm for something.

Labor Market Discrimination

Labor market discrimination occurs when individuals receive different treatment in employment opportunities, such as hiring, promotion, or wages, based on characteristics unrelated to their job performance, like race, gender, or age.