Answer:
A Mortgage Backed Bond is:
e. A loan in which security interest in real estate is granted by a borrower.
Explanation:
A mortgage backed bond is tied to or secured on a real estate asset. This implies that the bond is not just a promise to pay a debt obligation but the attached promise is secured or backed by some real assets. There is extra security provided for the bond because specific assets are identified as securities for the bond. Since the bonds are associated with some real assets, the assets can be traded in the event that the debt obligations are not met.
Answer:
Option B
Explanation:
In simple words, A policy of stabilisation refers to the package or group of indicators that have been presented to normalize a financial sector or economic system. The term may relates to initiatives in two separate situations: convergence of the economic cycle or stabilisation of its credit crunch. It is one type of unilateral strategy in any situation.
Thus, from the above we can conclude that the correct option is B .
Answer:
b) high in rich countries.
Explanation:
Capital-to- labour ratio measure the degree of capitalisation of an economy.
Labour is the service that is given by workers in exchange for salaries in the production process.
Capital is the long term input that is put into the manufacturing process, usually in the form of machinery or systems that automate production.
Capital-to-labour ratio= Total capital/ Total labour
Rich countries have a high level of capitalisation of their production process, where a lot of activity is automated. So capital is high and labour input is low. This results in a high capital-to-labour ratio.
On the other hand poor countries are more labour inensive, so their capital-to-labour ratio is low.
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