In: Economics
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. |
"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.