(10 points) In The Big Short, mortgage brokers were characterized as having sought out (targeted) subprime borrowers, reflecting a new method of discriminatory lending practices in the US housing market. Question detail and grading rubric: 1point: What does it mean to be a “subprime” borrower? 1 point: What is the historical relationship between Fannie Mae and redlining? What was the economic justification for this practice? 4 points: What is Fannie Mae’s AUS and how does it use FICO scores, LTV ratios, and DTV ratios? Define each of those underlined terms in your answer and explain their relevance to mortgage approval generally and to Fannie Mae specifically. 2 points: Based on the material from class, what is the relationship between race and AUS outcomes? Between race and mortgage approval rates over and above AUS outcomes? Explain the reason for each relationship. 2 points: Why did mortgage brokers in The Big Short actively seek out subprime borrowers? Why does this seem counter-intuitive, and what was it about market incentives that nonetheless led to such behavior?

Using correct significant figures, answer the following question.    The volume of a wooden block is mathematically determined to be 54.7 cm3. If the mass is determined to be 422.57 g, what would be the density of the block?   

Round 4.7989 to three significant figures.

Which of the following BEST describes the primary objective of Organizational Development (OD)?

A cell culture begins with 3×10^5 cells. After 24 hours, the cell count increases to 2.4×10 ^6. Assuming exponential growth, what is the growth rate?

Which of the following best describes the concept of ‘investing in people’ as a strategy for long-term success?

The density of copper is 8.95 g/mL. You determine the density of a copper rod in the laboratory to be 8.68 g/mL. What is the percent error of your density determination?

Sensitivity training focuses primarily on individual performance rather than group dynamics. 

What are the possible benefits of promoting from within an organization?

Which piece of glassware measures liquids more accurately, a 100 mL beaker or a 100 mL graduated cylinder.