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lana [24]
3 years ago
6

Borrowers who met certain requirements for mortgages, such as minimum income level relative to the total mortgage amount, could

obtain mortgages that were qualified to be securitized. Such mortgages were called_________________.
Business
1 answer:
AleksAgata [21]3 years ago
6 0

Answer:

Subprime or Alt-A mortgages

Explanation:

Generally, there are three types of mortgages: prime mortgage, subprime mortgage, and Alt-A mortgage.

Prime mortgages are mortgages that are usually given to people with excellent credit rating, who can meet all requirements and they are considered as high quality borrowers. Therefore, the interest rates they are offered usually relatively low.

Subprime mortgages are mortgages that are usually given to people with poor credit ratings or histories, who cannot meet all requirements to be given conventional mortgages and are considered as low quality borrowers.  Therefore, the interest rates they are offered usually relatively high because the mortgage is considered as the riskiest.

The full meaning of Alt-A mortgage is Alternative A Mortgages which is a type of mortgages for people whose credit ratings or risk profiles lie between prime and subprime. The holders can meet more requirements than the holders of subprime mortgage but not as much as the holders of a prime mortgage. This mortgage is riskier than the prime mortgage but less risky than subprime mortgage. Therefore, the interest rates it offered are therefore higher than what the holder of prime mortgage get but it lower than the interest rates offered to the holders of subprime mortgage.

Best of luck.

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Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with
Masja [62]

Answer:

Monthly savings= $3,584.42

Explanation:

Giving the following information:

Ross has decided that he wants to build enough retirement wealth that, if invested at 6 percent per year, will provide him with $4,600 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.

First, we need to find the final value.

FV= (4,600*12)*30= $1,656,000

Now, we can calculate the monthly deposit:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

i= 0.06/12= 0.005

n= 20*12= 240

A= (1,656,000*0.005)/[(1.005^240)-1]= 8,280/ 2.31= $3,584.42

6 0
3 years ago
Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to s
andrezito [222]

Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. Under "current liabilities"section of balance sheet this account will be recorded as "account payable".

Answer: Option (B) is correct

<u>Explanation:</u>

Raw material purchased on credit from a vendor is a liability and it is shown under current liabilities in "accounts payable". Since raw material purchased on credit and payment is to be made after two months.

Payment due gives rise to liability. Now current liability is a company's short term obligations that are to be paid back within a year. Here the firm will have to make payment within two months to the vendor.

8 0
3 years ago
Read 2 more answers
The principal supplier(s) of U.S. dollars to the foreign exchange market is/are Group of answer choices
scZoUnD [109]

Answer:

U.S. households or firms wishing to purchase foreign goods or assets.

6 0
3 years ago
This is the term that describes the circus performers who were painted by pablo picasso
ipn [44]

I'll think it's better if you search it up on google it will probably give you more information

8 0
3 years ago
The open systems anchor of organizational behavior states that: 1 point A. organizations affect and are affected by their extern
photoshop1234 [79]

Answer:

A. organizations affect and are affected by their external environments.

Explanation:

An organizational behavior can be defined as the study of people's opinions, feelings, actions and how people perceive an organization.

The open systems anchor of organizational behavior states that organizations affect and are affected by their external environments. The external environment comprises of factors such as;

1. Criteria set by the regulatory agencies where the organization is operating.

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4. The investor's needs or requirements.

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8 0
3 years ago
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