1. ________________ are long-term loans secured by real estate.
2. It is an insurance policy that guarantees to make up any discrepancy between the value of the property
and the loan amount, should a default occur.
3. These are interest payments made at the beginning of a loan.
4. One characteristic common to mortgage loans is the requirement that _____________, usually the real
estate being financed, be pledged as security.
5. To obtain a mortgage loan, the lender also requires the borrower to make a ________________ on the
property, that is, to pay a portion of the purchase price.
6. This means that the payments will pay off the outstanding indebtedness by the time the loan matures.
7. This type of mortgage loans originated by banks or other mortgage lenders but are not guaranteed by
government or government controlled entities.
8. In this type of mortgage loan, the lender lowers the interest rate in the mortgage in exchange for a share
of any appreciation in the real estate.
9. This is a security that is collateralized by pool of mortgage loans.
10. These are financial instruments that derive their value on contractually required cash flows from some
other security or index.
11. A __________________ is an agreement between a seller and a buyer that requires that seller to deliver a
particular commodity at a designated future date at a predetermined price.
12. These are contracts to exchange cash flows as of a specified date or a series of specified dates based on a
notional amount and fixed and floating rates.
13. These are international bonds issued in the country in whose currency the bond is denominated, and they
are underwritten by investment bank in that country.
14. It is the interest rate offered by the largest and strongest banks on large deposits.
15. It is an international bond underwritten by an international syndicate of banks and sold to investors in
countries other than the one in whose money you need the bond is denominated.
16. In the spot exchange market comma the quoted exchange rate is typically called a _______________.
17. This forex rate transaction are those which involve immediate exchange of bank deposits.
18. From the end of World War II until the early 70s, the world was on a fixed exchange rate system
administered by the ____________________.
19. It is the current method of exchange rate determination.
20. This factor tends to deflate the value of a currency because holding the currency results in reduced
purchasing power.