Which of the Following Explains Why Mortgages Weren't Considered Securities

question 126

Multiple Choice

Which of the following explains why mortgages weren't considered securities prior to 1970?

• A)The Federal Reserve Act of 1913 prohibited mortgages from being considered securities.An amendment to the Act was approved in 1970 that allowed mortgages to be considered securities.
• B)Until 1970,the average annual increase in housing prices did not allow the buying and selling of mortgages to be profitable.There has been a significant annual increase in housing prices and mortgage values since 1970.
• C)Congress passed a law in 1970 stipulating that mortgages could be classified as securities.
• D)Prior to 1970,mortgages were rarely resold in the secondary market.