Which of the Following Statements Concerning Mortgage Backed Securities Are

question 85

Multiple Choice

Which of the following statements concerning mortgage backed securities are correct?
I. They are secured by a pool of residential mortgages.
II. A portion of the income stream is a non-taxable return of capital.
III. They are backed by the full faith and credit of the U.S. government.
IV. Their maturity depends on prepayments of the mortgages in the pool.

• A) I and III only
• B) I and IV only
• C) II, III and IV only
• D) I, II and IV only

---

Definitions:

Task Leadership

The ability to guide a group toward achieving a specific goal, focusing on the necessary steps and processes to reach the objective.

360-Degree Feedback

A performance appraisal method where an employee receives confidential, anonymous feedback from the people who work around them.

Achievement Motivation

The drive to pursue and attain goals; an individual's persistent effort to succeed and meet standards of excellence.

Desire for Control

The motivation to influence or regulate one's environment or the outcomes of various aspects of one's life.