1.Which of the following has contributed most directly to giving investors the ability to geographically diversify risk in their mortgage portfolios? A) Passthrough securities. B) Variable rate mortgages. C) Interstate branch banking. D) Bank holding companies. The correct answer was A) Both mortgage-backed securities (MBS) and interstate banking have improved capital market efficiency by increasing the availability of investment alternatives for savers while providing a source of funding for people with capital requirements in different regions. In the MBS market, passthrough securities have given investors the ability to spread the risk of their mortgage portfolios geographically. 2.Which of the following is associated most closely with the need for local lending expertise? A) Variable rate mortgage lending. B) Interstate branch bank lending. C) Option adjustable rate mortgage lending. D) Small business lending. The correct answer was B) Interstate branch banking facilitates the flow of a bank’s deposits in one region (state) to a branch bank in another region where the funds are needed. Lending in these regions is driven by lenders with business lending expertise in the area where the funds will be used. 3.Which of the following is associated most closely with providing liquidity to the mortgage market? A) Variable rate mortgages. B) Mortgage-backed securities. C) Option adjustable rate mortgages. D) Interstate banking. The correct answer was B) The mortgage-backed securities market provides mortgage lenders facing a shortage of loanable funds with the means to write mortgages, then sell them in a liquid market to mortgage lenders with excess funds. | 
发表于 2008-4-19 18:55
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