5. What is the benefit of mortgage securitization to other financial institutions? A. The institution writing the mortgage does not have to worry about default risk and can lend to less credit worthy customers _B. The institution writing the mortgage is able to lend a lower interest rate C. It allows the institution writing the mortgage to focus on origination and/or servicing of mortgages rather than financing them D. The institution writing the mortgage can write longer term mortgages 6. Security Exchange Commission plays a key role in regulating securities firms by A. Enforcing financial disclosure laws B. Tightly limiting how securities can invest their funds C. Both A and B D. None of the above 7. Security firms often perform an advisory role for their corporate clients. Which of the following would be an example of something they may advise a client about A. Restructuring their organization to increase its value by carve outs, spinoffs, divestitures, and mergers B. The issuing of additional new stock or bonds c. An initial public offering (IPO) D. All of the above 8. Examples of how insurance manage the risk of adverse selection are" A. Life insurance is sold more by agents reaching out to consumers to show them the value of insurance, than by people reaching out to companies when they need it B. The affordable care act requires everyone to have insurance C. States require all drivers to have auto insurance D. All of above 9. What is moral hazard? A. When people with preexisting conditions buy health insurance B. When people behave in a riskier manner because they have insurance to compensate for any loss C. Both of the above D. None of the above 10. Which of the below is a source of funds for a live insurance company. A. Premiums from annuities B. Government securities C. Policy loans D. Stocks. 5. What is the benefit of mortgage securitization to other financial institutions? A. The institution writing the mortgage does not have to worry about default risk and can lend to less credit worthy customers _B. The institution writing the mortgage is able to lend a lower interest rate C. It allows the institution writing the mortgage to focus on origination and/or servicing of mortgages rather than financing them D. The institution writing the mortgage can write longer term mortgages 6. Security Exchange Commission plays a key role in regulating securities firms by A. Enforcing financial disclosure laws B. Tightly limiting how securities can invest their funds C. Both A and B D. None of the above 7. Security firms often perform an advisory role for their corporate clients. Which of the following would be an example of something they may advise a client about A. Restructuring their organization to increase its value by carve outs, spinoffs, divestitures, and mergers B. The issuing of additional new stock or bonds c. An initial public offering (IPO) D. All of the above 8. Examples of how insurance manage the risk of adverse selection are" A. Life insurance is sold more by agents reaching out to consumers to show them the value of insurance, than by people reaching out to companies when they need it B. The affordable care act requires everyone to have insurance C. States require all drivers to have auto insurance D. All of above 9. What is moral hazard? A. When people with preexisting conditions buy health insurance B. When people behave in a riskier manner because they have insurance to compensate for any loss C. Both of the above D. None of the above 10. Which of the below is a source of funds for a live insurance company. A. Premiums from annuities B. Government securities C. Policy loans D. Stocks