When Banks Re-Securitize Other Asset-Backed Securities,the New Asset-Backed Security Is

question 18

Multiple Choice

When banks re-securitize other asset-backed securities,the new asset-backed security is known as a:

• A)mortgage-backed security.
• B)double-barreled security.
• C)collateralized debt obligation.
• D)re-securitized security.

---

Definitions:

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues from non-operational activities like investment income.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Manufacturing Margin

The difference between the sales revenue of manufactured goods and the direct costs associated with producing them.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and generate profit.