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FIN 3133 - Part one and two Questions and Answers | New One | Grade A+
FIN 3133 - Part one and two Questions and Answers | New One | Grade A+
[Show more]FIN 3133 - Part one and two Questions and Answers | New One | Grade A+
[Show more]How does the creation of a secondary market in mortgages help to promote home ownership? 
Ans: A and B only. 
A. By allowing banks to offer a lower interest rate than if they held the loan themselves. 
B. By allowing banks to transfer the risk of holding a loan to firms that have economies of 
sca...
Preview 2 out of 7 pages
Add to cartHow does the creation of a secondary market in mortgages help to promote home ownership? 
Ans: A and B only. 
A. By allowing banks to offer a lower interest rate than if they held the loan themselves. 
B. By allowing banks to transfer the risk of holding a loan to firms that have economies of 
sca...
What are the costs and sources of inefficiency in a barter system? 
Ans: -There is difficulty in accumulating wealth. 
-Transactions costs are almost always high. 
-There is increased time and effort spent looking for trading partners. 
-There is a lack of standardization. 
What is specialization? ...
Preview 3 out of 16 pages
Add to cartWhat are the costs and sources of inefficiency in a barter system? 
Ans: -There is difficulty in accumulating wealth. 
-Transactions costs are almost always high. 
-There is increased time and effort spent looking for trading partners. 
-There is a lack of standardization. 
What is specialization? ...
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