Why would investors buy mortgage backed securities? Select one: Q a. because of their higher return 0 b. because of their relatively lower risk 0 c. to diversity their portfolio 0 d. they have higher liquidity compared to other financial assets 0 e. all except d HowI can the Principal-agent problem associated with the mortgage backed securities be reduced? Select one: Q a. by requiring the issuer to maintain some of these securities in their own balance sheet 0 b. by requiring the buyer to hedge their risk 0 c. by requiring the issuer to purchase insurance 0 d. by requiring the buyer to purchase insurance A bond issued by a Japanese issuer in Germany and denominated in the the US dollars is an example of Select one: Q a. Samurai bond 0 b. Foreign bond 0 c. Yankee bond 0 d. A Euro dollar bond 0 e. None of the above Which of the following institutions are more likely to invest in capital market securities? Select one: Q a. money market mutual funds 0 b. pension funds 0 c. life insurance companies 0 a. both pension funds and life insurance companies In what ways are Eurobanks more competitive than domestic banks? Select one: Q a. theyr do not have statutory reserve requirements 0 b. they do not have to pay insurance premiums on deposits 0 c. they are not as regulated as domestic banks 0 a. they raise their funds in large blocks and do not need to maintain branches 0 8. all of the above How can the securitization of mortgages and the sale of mortgage backed securities benefit banks? Select one: Q a. it can provide new sources of funding for banks that are not deposits 0 b. it allows banks to reduce the risk of their portfolio by selling loans that are concentrated in one region or in one sector 0 c. lt can decrease the risks of their assets and therefore reduce regulatory capital 0 d. all of the above