Which of the following instruments generates the largest amount of funds annually in the credit markets?
A)tax-exempt obligations
B)corporate bonds
C)mortgages
D)bank loans

Question

Quizplus · Accepted Answer

Mortgages generate the largest amount of funds annually in the credit markets, as they are used to finance the purchase of homes, which represents a huge portion of consumer spending. According to the Federal Reserve, at the end of 2020, the total mortgage debt outstanding in the US was $10.9 trillion, far surpassing the amount of outstanding corporate bonds, tax-exempt obligations, or bank loans.

Which of the Following Instruments Generates the Largest Amount of Funds