Which of the Following Statements Is Not True of All

question 77

Multiple Choice

Which of the following statements is not true of all pass-through securities?

• A) They may not be repaid in full for 25 to 30 years.
• B) They are viewed by the capital markets as having average maturities of much less than 30 years.
• C) Their interest and principal repayments are predictable.
• D) They pass through all payments of principal and interest from the underlying pool of mortgages to the investors.

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Definitions:

General Ledger

The General Ledger is a complete record of all financial transactions over the life of a company, organized by accounts.

Sales Journal

is a specialized accounting journal used to record all sales transactions of a business on credit.

Merchandise

Goods or products that are bought and sold by businesses.

Credit Sales

Sales made by a business where payment is delayed as per agreed-upon terms, typically recorded as accounts receivable.