Local Banks Could Pass the Risk Involved in Holding Mortgage

question 42

Multiple Choice

Local banks could pass the risk involved in holding mortgage debts on to an investor with a higher risk tolerance using:

• A) mortgage-backed securities.
• B) leveraged securities.
• C) leveraged investments.
• D) government-backed securities.

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Definitions:

Cardiac Muscle

A type of involuntary striated muscle found exclusively in the heart, responsible for pumping blood throughout the body.

Skeletal Muscle

A type of striated muscle tissue that is attached to bones, enabling voluntary movement of the body through contraction and relaxation.

Smooth Muscle

A type of muscle tissue found in the walls of hollow organs (such as intestines and blood vessels) that contracts involuntarily, controlled by the autonomic nervous system.

Skeletal Muscle

Skeletal muscle is a type of striated muscle tissue that is attached to bones by tendons and is under voluntary control, enabling movement of the skeleton.