How do mortgage backed securities work

Reference no: EM131243733

1. What do economists mean when they say that monetary policy can exhibit cyclical asymmetry? Why is this possibility significant to policymakers?

2. LAST WORD How do mortgage backed securities work? Why did banks think that selling mortgage backed securities would relieve them of the risks involved with mortgage lending? How did the banks indirectly come to once again be exposed to mortgage lending risks? What happened to bank reserves during the mortgage debt crisis? How did the Fed respond?

Reference no: EM131243733

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