quiz 06
Fannie Mae and Freddie Mac held a competitive advantage over other mortgage
lenders primarily because - answer they could borrow funds cheaper than other lenders
because their bonds were perceived to be backed by the federal government.
If a nation is going to achieve and sustain a high rate of economic growth, it must -
answer have a mechanism capable of attracting savings and channeling them into
wealth-creating projects.
Which of the following accurately describes the relationship between mortgage default
rates and the 2008 recession? - answer The rise in the mortgage default rate preceded
the recession and it was a major cause of the 2008 economic downturn.
In a market economy, persons undertaking an investment project must - answereither
personally supply the required funds or convince other investors to do so.
Regulations that make it difficult to start a business or enter a particular job market are
harmful because - answerthey reduce competition and prevent some voluntary
exchanges from occurring.
In recent decades labor markets in European countries like Italy and Spain have been -
answermore highly regulated and the unemployment rates of the European countries
have been higher than the United States.
The Fed's low short-term interest rate policy of 2002 to 2004 encouraged decision
makers to - answerborrow more and increase their purchases of housing.
If the Fed is going to create an environment for economic progress, it should focus on -
answerthe achievement of price stability.
When expansionary monetary policy pushes interest rates to artificially low levels, -
answerthe demand for and prices of interest-sensitive goods, like housing, will increase.
Monetary and price instability will - answergenerate uncertainty, and encourage
investors and businesses to move their activities to countries with a more stable
monetary environment.
Between 2001 and 2005, sub-prime and poorly documented loans ____________ as a
share of the total. - answerrose from 10 percent to more than 30 percent
Fannie Mae and Freddie Mac held a competitive advantage over other mortgage
lenders primarily because - answer they could borrow funds cheaper than other lenders
because their bonds were perceived to be backed by the federal government.
If a nation is going to achieve and sustain a high rate of economic growth, it must -
answer have a mechanism capable of attracting savings and channeling them into
wealth-creating projects.
Which of the following accurately describes the relationship between mortgage default
rates and the 2008 recession? - answer The rise in the mortgage default rate preceded
the recession and it was a major cause of the 2008 economic downturn.
In a market economy, persons undertaking an investment project must - answereither
personally supply the required funds or convince other investors to do so.
Regulations that make it difficult to start a business or enter a particular job market are
harmful because - answerthey reduce competition and prevent some voluntary
exchanges from occurring.
In recent decades labor markets in European countries like Italy and Spain have been -
answermore highly regulated and the unemployment rates of the European countries
have been higher than the United States.
The Fed's low short-term interest rate policy of 2002 to 2004 encouraged decision
makers to - answerborrow more and increase their purchases of housing.
If the Fed is going to create an environment for economic progress, it should focus on -
answerthe achievement of price stability.
When expansionary monetary policy pushes interest rates to artificially low levels, -
answerthe demand for and prices of interest-sensitive goods, like housing, will increase.
Monetary and price instability will - answergenerate uncertainty, and encourage
investors and businesses to move their activities to countries with a more stable
monetary environment.
Between 2001 and 2005, sub-prime and poorly documented loans ____________ as a
share of the total. - answerrose from 10 percent to more than 30 percent
