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lara31 [8.8K]
3 years ago
14

James borrows $300,000 for a home from Bank A. Bank A resells the right to collect on that loan to Bank B. Bank B securitizes th

at loan with hundreds of others and sells the resulting security to a state pension plan, which at the same time purchases an insurance policy from AIG that will pay off if James and the other people whose mortgages are in the security can’t pay off their mortgage loans. Suppose that James and all the other people can’t pay off their mortgages. Which financial entity is legally obligated to suffer the loss?A. Bank A.B. Bank B.C. The state pension plan.D. AIG.
Business
1 answer:
sattari [20]3 years ago
6 0

Answer:

D) AIG

Explanation:

We went back in time to 2008 and we are in the middle of the subprime mortgage crisis. This is an example of how mortgage backed securities and collateralized debt obligations worked.

The problem with this scenario is that in order for every company involved to be able to make a profit, the mortgages' interest rates skyrocketed which made it harder for families to pay back their loans. This eventually made the families lose their houses and that was the end to the housing bubble and the whole economy collapsed.

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Choose the term that best matches the description given.
givi [52]

People often visits tourist attraction sites.  That there has been an increase in ecotourism, which is tourism to exotic, often threatened natural environments refers to <u>ecological </u>factors.

<h3>What influences tourism?</h3>

Ecotourism is known to be a new trend in the tourism industry. A factor analysis was done and five environmental factors were known to have a negative impact on tourists experience. They include;

  • Pollution
  • Tourism product offering
  • Park violation,
  • Environmental management
  • Tourism impacts.

Learn more about Tourism from

brainly.com/question/5501800

6 0
2 years ago
On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on Se
dexar [7]

Answer:

No

Explanation:

Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company

3 0
3 years ago
jazz world inc. is considering a project that has the following cash flow and wacc data. what is the project's npv? note that a
Marianna [84]

The project's projected NPV is $185.11. (second option)

<h3>What is the NPV?</h3>

Net present value is the present value of after-tax cash flows from an investment less the amount invested. Only projects with a positive NPV should be accepted.

A project with a negative NPV should not be chosen because it isn't profitable. NPV is calculated by taking the present value of all cash flows over the life of a project. Then, the present value of cash flows is subtracted from the investment's initial investment

NPV = -1200 + 400 / 1.0975 + 425 / 1.0975² + 450 / 1.0975³ + 475 / 1.0975^4

= $185.11

To learn more about net present value, please check: brainly.com/question/25748668

#SPJ1

8 0
1 year ago
Mattel, the maker of barbie dolls, frequently shows television ads aimed at children on saturday mornings, when many children ar
qaws [65]

This most likely depicts an ethical problem because children may be deceived about what Barbie can do.

As some of these ads mix cartoon-type animation and “real” shots of the dolls, children may think that their Barbies can do specific types of actions based from the advertisement. This would also most likely lead to broken Barbies because children may copy the things that they saw in the ads. This is somewhat a form of false advertising.

3 0
3 years ago
Which of the following is an assumption of the decision-making process followed by consumers to maximize utility? rev: 04_09_201
kari74 [83]

Answer:

The correct answer is: The consumer considers the prices of the products.

Explanation:

When taking the decision regarding how to maximize utility the consumers will consider the prices of the products. The consumer will be able to maximize utility at the point where the marginal utility of money spent on each commodity is equal.

We can represent it as,

\frac{MU\ of\ good\ A}{Price\ of\ good\ A} = \frac{MU\ of\ good\ B}{Price\ of\ good\ B}

7 0
3 years ago
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