Whither Financial Regulation After the Subprime Financial Crisis?
1) All of the following would reduce the agency problems of the originate to distribute model except
A) encouraging more complex mortgage products.
B) more stringent licensing requirements.
C) clearer disclosure of mortgage terms.
D) discouraging borrowers from “getting in over their head.”
2) Higher capital requirements will reduce the problems incurred when troubled ________ which had been off balance sheet activities come back on the balance sheet.
A) structured investment vehicles (SIVs)
B) negotiable CDs
C) Eurodollars
D) Federal funds
3) Currently, Fannie Mae and Freddie Mac are
A) privately owned government sponsored enterprises.
B) privately owned enterprises with no government sponsorship.
C) government agencies.
D) government departments.