Question

A main argument for investing in US securities is the:

Multiple Choice

• low risk of owning them.

• varied time frame of payment for different types of securities.

• low rate of interest

• high rate of interest.

Over the two decades leading up the 2008 crisis, __________ interest rates meant that consumers could take on _____ debt without significantly increasing the amount of debt service they had to pay.

Multiple Choice

• falling; more

• falling; less

• rising; more

• rising; less

The sudden explosion of cheap and readily available mortgages encouraged people to:

Multiple Choice

• become more risk-averse.

• securitize their investments.

• become less risk-averse.

• buy bigger and better homes.

Answer 1

A main argument for investing in US securities is the: low risk of owning them.

US securities is the risk less investment than other tradable debt investments in the market , because of the US government guarantee towards US securities.

falling; more

falling Interest rates meant that consumers could take on more debt without significantly increasing the amount of debt service they had to pay. This is because just to encourage and revive money market.

buy bigger and better homes

Cheap and readily available mortgages facilitated people's to borrow debt easily at lower rate. If people's get such a grateful opportunity then they wish to improve their standard of living, that's why they prefer to buy bigger and better homes.