The Introduction of the Practice of Securitization Allowed

question 31

Multiple Choice

The introduction of the practice of securitization allowed:

• A) banks to more safely assume subprime mortgage loans.
• B) the government to promote a sense of security in the banking industry.
• C) banks to more safely leverage their investments.
• D) borrowers to feel better about taking out subprime loans.

---

Definitions:

Tukey's Multiple Comparison

Tukey's multiple comparison test is a statistical method used to find means that are significantly different from each other after performing an ANOVA, while controlling for Type I error across comparisons.

Fisher's LSD

A statistical method for testing the significant differences between means in a set of three or more sample groups.

Tukey's Multiple Comparison

A statistical test used to find the differences between means in a set of data, controlling the error rate when making several comparisons.

Studentized Range Statistic

A measure used in statistics to identify outliers in a data set, calculated by dividing the range by an estimate of the standard deviation.