Chapter 6 Questions
Arianna Sandoval

1.       In order for the Real Estate Market to be perfectly Competitive is should have at least the following characteristics

a.       Free Market

b.      Critical Mass of Market Participants

c.       Perfect Knowledge

d.      All of the Above

2.       In the short run the supply curve is showed as a upward sloping line T/F

3.       The market serving residential mortgage borrowers who do not qualify for standard mortgages is known as the

a.       Secondary Mortgage Market

b.      Mortgage Backed Securities

c.       Subprime Market

d.      Commercial Mortgage

4.       Mortgage Securitizations is pooling a large group of similar mortgages and selling them to investors T/F

5.       Intermediaries that match savers with borrowers include Savings & Loans, commercial banks, and insurance companies. T/F

6.       A private corporation created by an act of congress to stimulate and maintain the residential secondary mortgage market

a.       CMO

b.      GSE

c.       CDO

d.      CDS

7.       Unintended consequences result from actions government legislation have imposed with good intentions but result in economic and social costs that were not anticipated. T/F

8.       A Triple A rating is one of the riskiest T/F

Answers

1. D   2. F   3. C  4. T   5. T 6. B  7. T   8. F