Questions from Financial Markets

Q: How did the repayment of subprime mortgages compare to the repayment of

How did the repayment of subprime mortgages compare to the repayment of prime mortgages during the credit crisis?

Q: Explain the problems that arise in valuing MBS.

Explain the problems that arise in valuing MBS.

Q: Do you think that the U.S. financial system will

Do you think that the U.S. financial system will be able to avoid a credit crisis in the future?

Q: Explain the role of credit rating agencies in facilitating the flow of

Explain the role of credit rating agencies in facilitating the flow of funds from investors into the mortgage market (through mortgage-backed securities).

Q: Explain why Fannie Mae and Freddie Mac experienced mortgage problems during the

Explain why Fannie Mae and Freddie Mac experienced mortgage problems during the credit crisis.

Q: The U.S. Treasury attempted to resolve the credit crisis

The U.S. Treasury attempted to resolve the credit crisis by establishing a plan to buy mortgage-backed securities held by financial institutions. Explain how the plan could improve the situation for m...

Q: Why do you think it is difficult for investors to assess the

Why do you think it is difficult for investors to assess the financial condition of a financial institution that has purchased a large amount of mortgage-backed securities?

Q: How have international mutual funds (IMFs) increased the international integration

How have international mutual funds (IMFs) increased the international integration of capital markets among countries?

Q: Venture capital firms commonly attempt to cash out as soon as possible

Venture capital firms commonly attempt to cash out as soon as possible following IPOs. Describe the likely effect that would have on the stock price at the time of lockup expiration. Would the effect...

Q: Assume the following conditions. The last time the FOMC met,

Assume the following conditions. The last time the FOMC met, it decided to raise interest rates. At that time economic growth was very strong, and inflation was relatively high. Since the last meeting...