The Value of an IO Strip Will Most Likely Increase

question 13

Multiple Choice

The value of an IO strip will most likely increase when:

• A)the PSA schedule rate decreases from 200 to 10.
• B)market interest rates remain constant.
• C)prepayments increase.
• D)mortgage refinancing increases.
• E)market interest rates decrease significantly.

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Definitions:

Phonemes

The smallest units of sound in a language that can distinguish one word from another, such as the difference between the /p/ and /b/ sounds in "pat" and "bat."

Psycholinguistics

The study of the psychological and neurobiological factors that enable humans to acquire, use, comprehend, and produce language.

Morphemes

The smallest grammatical unit in a language. A morpheme cannot be further divided and still retain meaning.

Algorithms

A set of rules or a step-by-step procedure for solving a problem or completing a task, often used by computers.