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Question 18 Financial institutions prefer holding securitized mortgages because they lower risk; sharing it among depositors lower risk; diversifying mortgage market risk lower capital requirements;

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Question 18 Financial institutions prefer holding securitized mortgages because they lower risk; sharing it among depositors lower risk; diversifying mortgage market risk lower capital requirements; through synthetic credit contracts, called credit default swaps lower risk; diversifying idiosyncratic risks None of these is correct

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