Financial Markets by Yale University (Week
4) Exam Questions And Answers Latest
Update 2025
Which of the following is FALSE of Direct Participation Programs
(DPPs)? -
correct answer ✅They must operate for at least some minimum
amount of time.
If Sabine is "under water", what can we say about her situation? -
correct answer ✅The value of her home is less than the value of
her mortgage.
Why does the 30 year mortgage rate so closely match the 10 year
treasury bond YTM? -
correct answer ✅Banks intentionally track the 10 year treasury
bond YTM.
Who pays for private mortgage insurance on a mortgage? -
correct answer ✅The homeowner
Before the recession in 2007, why were banks giving out mortgages
to people who could not afford them? -
correct answer ✅Banks would resell to mortgages to CMOs, and
thus they were not incentivized to make sure their mortgages were
unlikely to default.
4) Exam Questions And Answers Latest
Update 2025
Which of the following is FALSE of Direct Participation Programs
(DPPs)? -
correct answer ✅They must operate for at least some minimum
amount of time.
If Sabine is "under water", what can we say about her situation? -
correct answer ✅The value of her home is less than the value of
her mortgage.
Why does the 30 year mortgage rate so closely match the 10 year
treasury bond YTM? -
correct answer ✅Banks intentionally track the 10 year treasury
bond YTM.
Who pays for private mortgage insurance on a mortgage? -
correct answer ✅The homeowner
Before the recession in 2007, why were banks giving out mortgages
to people who could not afford them? -
correct answer ✅Banks would resell to mortgages to CMOs, and
thus they were not incentivized to make sure their mortgages were
unlikely to default.
