1. Investment Environment

Question 1

The application of technology to financial marketers

Answer 1

Fintech

Question 2

The trend towards the elimination of the intermediary

Answer 2

Decentralized finance (DeFi)

Question 3

Mortgage-backed Securities were also called

Answer 3

Pass-throughs

Question 4

These were low-risk ______ mortgages, meaning that eligible loans for agency securitization couldn’t be too big, and homeowners had to meet underwriting criteria establishing their ability to repay the loan.

Answer 4

Conforming mortgages

For example, the ratio of loan amount to house value could be no more than 80%. But securitization gave rise to a new market niche for mortgage lenders: the ‘originate to distribute (versus originate to hold) business model.

Question 5

P&I stands for “principal & interest

Question 6

is often kept in the form of bars, ingots, or coins, and can sometimes be considered legal tender.

Answer 6

Bullion

refers to physical gold and silver of high purity that is often kept in the form of bars, ingots, or coins. Bullion can sometimes be considered legal tender, and is often held as reserves by central banks or held by institutional investors.