https://papertowrite.com/wp-content/uploads/2020/04/New-logo-300x62.png 0 0 admin https://papertowrite.com/wp-content/uploads/2020/04/New-logo-300x62.png admin2020-05-06 16:50:222020-05-06 16:50:22Strayer FIN350 - Week 6 Quiz 5
â¢ Question 1 ____ mortgages enabled more people with relatively lower income, or high existing debt, or a small down payment to purchase homes. â¢ Question 2 ____ economic growth will probably ____ the risk premium on mortgages and ____ the price of mortgages.â¢ Question 3 Rates for adjustable-rate mortgages are commonly tied to theâ¢ Question 4 The interest rate on a second mortgage is ____ on a first mortgage created at the same time, because the second mortgage is ____ the existing first mortgage in priority claim against the property in the event of default. â¢ Question 5 Fannie Mae and Freddie Mac experienced financial problems during the credit crisis because they: â¢ Question 6 A financial institution has a higher degree of interest rate risk on a ____ than a ____. â¢ Question 7 Financial institutions that hold fixed-rate mortgages in their asset portfolios are exposed to ____ risk, because they commonly use funds obtained from short-term customer deposits to make long-term mortgage loans. â¢ Question 8 In a collateralized mortgage obligation (CMO), mortgages are segmented into ____ (or classes). â¢ Question 9 ____ risk is the risk that a borrower may prepay the mortgage in response to a decline in interest rates. â¢ Question 10 For any given interest rate, the shorter the life of the mortgage, the ____ the monthly payment and the ____ the total payments over the life of the mortgage. â¢ Question 11 An institution that originates and holds a fixed-rate mortgage is adversely affected by ____ interest rates; the borrower who was provided the mortgage is adversely affected by ____ interest rates. â¢ Question 12 Which of the following is not true with respect to a growing-equity mortgage? â¢ Question 13 From the perspective of the lending financial institution, interest rate risk is â¢ Question 14 Collateralized mortgage obligations (CMOs) are generally perceived to have â¢ Question 15 Which of the following will typically require homeowners to ultimately request a new mortgage? â¢ Question 16 “Pink sheets” are traded on the â¢ Question 17 ____ are portfolios of international stocks created and managed by various financial institutions. â¢ Question 18 The largest organized exchange, listing the largest firms, is the â¢ Question 19 A ____ requires that dividends cannot be paid on common stock until all current and previously omitted dividends are paid on preferred stock. â¢ Question 20 Shareholders can most easily measure a firm’s performance by monitoring changes in its ____ over time. â¢ Question 21 Managers of firms may consider a stock repurchase or even a leveraged buyout when they believe their stock is ____ by the market, or a secondary stock offering when they believe their stock is ____ by the market.â¢ Question 22 The prevailing price per share divided by the firm’s earnings per share is known as the â¢ Question 23 The transaction costs to the issuing firm in an IPO is usually ____ percent of the funds raised. â¢ Question 24 ____ sell shares to investors and use the proceeds to invest in portfolios of international stocks created and managed by portfolio managers. â¢ Question 25 The ____ is a value-weighted index of stock prices of 500 large U.S. firms. â¢ Question 26 A new stock issuance by a specific firm that already has stock outstanding is referred to as a(n) â¢ Question 27 Which of the following is not a part of the over-the-counter market? â¢ Question 28 ____ are acquisitions that require substantial amounts of borrowed funds. â¢ Question 29 Initial public offerings (IPOs) perform ____ on the day following the IPO and ____ for periods of a year or longer after the IPO. â¢ Question 30 When a firm buys some of its shares that it had previously issued, this is referred to as a:
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