Fin 4319-Lecture 4 Flashcards
1
Q
In the test, what determines SSU or DSU?
A
- Net lending or net borrowing row (Financial Assets)
2
Q
What financial instrument represented the largest single source of financing for the household sector in 2004?
A
Home morgages
3
Q
What are the Government Sponsored Entities?
A
Government Companies for special purposes
4
Q
What is Freddie Mac and Fannie Mae?
A
GSE which helps people buy homes and farms
5
Q
What is ABS?
A
Asset Backed Securities. Pool together different assets into a security.
6
Q
What is an example ABS?
A
Mortgage Backed Securties
7
Q
What is subprime mortgage?
A
Mortgage to people with lower than normal credit rating and have to pay more interest
8
Q
What is alt a mortgage?
A
For people with high credit but are self employeed
9
Q
What are subprime MBS?
A
Pooling together subprime mortgages to sell to investors with high interest rate.
