Question

In: Economics

A major challenge for banks with lots of mortgage loans is a lack of liquidity. The...

A major challenge for banks with lots of mortgage loans is a lack of liquidity. The solution to this problem has been the emergence of

a.

​a secondary mortgage market.
b.

​liquid mortgages.
c.

a primary mortgage market.
d.

mortgage insurance.

Solutions

Expert Solution

"A"

A secondary mortgage market is where the primary mortgages are brought and sold that will increase the liquidity for the banks that have more primary mortgages and low on the liquidity.

Rahul Sunny answered 3 years ago
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