Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)Mortgage-backed securities,such as GNMAs,are pass-through securities.That is,each security is backed by an underlying portfolio or pool of mortgages.
• B)The Government National Mortgage Association (GNMA,or "Ginnie Mae")is an example of an enterprise backed by the government,but owned privately;the Student Loan Marketing Association ("Sallie Mae")is an example of a government-sponsored agency,a wholly owned subsidiary of the U.S.government.
• C)Sovereign debt is debt issued by national governments.
• D)Agency securities are issued by agencies of the U.S.government or by U.S.government-sponsored enterprises.

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Definitions:

Computer Software

Programs and operating information used by a computer to perform specific tasks.

Total Revenue

The total income received by a firm from the sale of its goods or services before any costs or expenses are deducted.

Opportunity Cost

The value of the next best alternative that is forgone when making a decision.

Hardware Store

A retail business specializing in selling tools, building materials, and supplies for home improvements, repairs, and maintenance projects.