Answer:
B. Regulations were relaxed, leading to non-qualifying mortgages getting approved for loans.
Explanation:
Hedge funds, banks, and insurance companies were instrumental to the subprime mortgage meltdown while regulators looked the other way. They were given free rein to construct so many complex securities which somehow contributed to the mortgage defaults with financial institutions skimming fees during the securitization processes, and mortgages were made accessible for borrowers who did not meet the income and minimum down payment requirements.
Simple interest means that you only need to find the interest once and then keep adding it on every year. In this case, the interest would be 5.5% of $5000 every year, which is 275.
In 6 years, you'll have $1650, which is the amount earned from interest, plus $5000, which is the original investment.
So you'll have $6650 in 6 years.
Answer:
A company's stock price is defined by the demand the market has over it, by the analyst researching it and their forecast of growth, as well as the performance of the company at generating income.
Explanation:
The P/E ratio or price over earnings ratio is the ratio that explains the price of a stock. We take the price of the stock and then divide it by the earnings per share obtained by quarter and then by year when the fiscal year is over. It is influenced by the demand of the stock in the markets, by the projection analyst may have after researching the company and by the income, the company generates. Today there is an overvaluation of the stocks in all the markets. However by following the advice of W. Buffett and Peter Lynch, as well as Soros we can find undervalued stocks.
The correct answer would be False
