Savings, Investment Spending, and the Financial System- End of Chapter Problems 16. Sallie Mae is a quasi-governmental agency that packages individual student loans into pools of loans and sells shares of these pools to investors as Sallie Mae bonds. a Sallie Mae's packaging process is called .Compared to a scenario where investors can only buy and sell individual loans, the pooling process results in and for an investor. b. Sallie Mae's actions will cause investors to supply funding to students, creating loans at a interest rate. c. Suppose that a very severe recession hits and, as a consequence, many graduates cannot get jobs and default on their student loans. These defaults will create for investors and cause the bonds to become than expected, leading to loans available at a interest rate.
Savings, Investment Spending, and the Financial System- End of Chapter Problems 16. Sallie Mae is a quasi-governmental agency that packages individual student loans into pools of loans and sells shares of these pools to investors as Sallie Mae bonds. a Sallie Mae's packaging process is called .Compared to a scenario where investors can only buy and sell individual loans, the pooling process results in and for an investor. b. Sallie Mae's actions will cause investors to supply funding to students, creating loans at a interest rate. c. Suppose that a very severe recession hits and, as a consequence, many graduates cannot get jobs and default on their student loans. These defaults will create for investors and cause the bonds to become than expected, leading to loans available at a interest rate.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter27: Money And Banking
Section: Chapter Questions
Problem 6SCQ: Imagine that you are in the position of buying loans in the secondary market (that is, buying the...
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