Directions: For the following questions, you will receive no credit for copying from the transcript of the radio program. Every answer must be in your own words.
1) Explain why Clarence Nathan was used as an example in this news program:
2) Explain how the stock market works in as much detail as you can.
3) Describe what a mortgage backed security is.
4) Describe what a VIVA loan is and what type of person would be able to obtain that type of loan.
5) Describe what a NINA loan is and what type of person would be able to obtain that type of loan.
6) What reasons (more than one) did investors in large investment banks have for investing in very risky loans? Use the following 3 words in your answer: interest rate, return, price