Explain the disadvantages and dangers of Home Equity Loans. List any advantages or disadvantages of: The presence of a sinking fund. Why are safety and risk, two sides of the same coin? In your own words, describe each of the four components of the risk factor. How...
What are the advantages and disadvantages of using credit? Which market is bigger- the equity market or the credit market? Define what is meant by interest rate risk. a. Name the four major classes of mortgage-related securities. As an issuer, exp...
While it is unquestionable, as examined in Chapters3and7, that the loose monetary policies of the ECB (see Fig.1.4) had an impact on the housing bubble , it is important to emphasize that monetary policy alone did not cause the crisis. Indeed, the initial growth of mortgage risk and the...
What is a home equity loan, and what are its major advantages and disadvantages? A sinking fund can be set up in one of two ways. Discuss the advantages and disadvantages of each procedure from the viewpoint of both the firm and its bon...
1. Define the following words and give an example for each one: a. adjustable rate mortgage (ARM) b. cost-of-living adjustments (COLAs) c. indexed 2. What type of unemployment (cyclical, frictiona Identify and describe three factors...