Which of the Following Are Correct Regarding Mortgage-Backed Securities

question 3

Multiple Choice

Which of the following are correct regarding Mortgage-backed securities?
I.Interest only passes through to the investor.
II.Invest in a pool of mortgage loans.
III.Principal only passes through to the investor.
IV.Referred to as a pass-through security.

• A)I,II.
• B)II,III,
• C)II,IV.
• D)III,IV

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Definitions:

Ambiguous Terms

Words or phrases in a contract or agreement that are unclear and open to more than one interpretation.

Admission

A statement acknowledging the truth of something, often used in a legal context to refer to an acknowledgment of facts or responsibility.

Statute of Frauds

is a legal principle that requires certain contracts to be in writing and signed by the party to be charged, in order to be enforceable.

Statute of Frauds

The Statute of Frauds is a legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.