Questions from Financial Markets


Q: Why is it that an increase in a bank’s ROE might be

Why is it that an increase in a bank’s ROE might be a sign that the bank is taking on more risk?

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Q: You read that a bank’s net interest income has decreased. Why

You read that a bank’s net interest income has decreased. Why might this have occurred?

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Q: If the MPC is 0.9 and consumption increases by $

If the MPC is 0.9 and consumption increases by $50 million, determine what will happen to total spending according to the spending multiplier.

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Q: Kevin thinks home ownership is part of “the American dream”

Kevin thinks home ownership is part of “the American dream” and has been achieved by most Americans. Why is Kevin incorrect?

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Q: Carolyn has just purchased a homeowners’ insurance policy that will pay for

Carolyn has just purchased a homeowners’ insurance policy that will pay for damages to her house that occur only if flooding in her area takes place. What type of insurance did Carolyn purchase?

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Q: Home ownership rates in the United States started to increase after World

Home ownership rates in the United States started to increase after World War II. Why did this occur?

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Q: Which of the following is not a federal government agency designed to

Which of the following is not a federal government agency designed to assist families getting a home mortgage?

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Q: Adjustable-rate mortgages offer lower interest rates than fixed-rate

Adjustable-rate mortgages offer lower interest rates than fixed-rate mortgages, yet ARMs are often viewed as “more risky” than fixed-rate mortgages. Why is this the case?

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Q: Other than getting an adjustable-rate mortgage, what can a

Other than getting an adjustable-rate mortgage, what can a home purchaser do to get a mortgage with a lower monthly payment?

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Q: If a homeowner decides to save money each month to pay property

If a homeowner decides to save money each month to pay property taxes and insurance on their home, this is referred to as:

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