QUESTION 4

During the 1930's most mortgages were

		credit default swaps
		balloon mortgages
		subprime loans
		originated by investment banks

QUESTION 5

A loan with one discount point means that

		the borrower pays back the principal in one year plus interest
		the loan interest rate is decreased by 1% (for example, from 4% to 3%)
		at closing, the borrower pays 1% of the amount of the loan to the lender
		the borrower receives 1% cash back for every transaction