Which Type of Asset-Backed Security Is Not Affected by Prepayment

question 14

Multiple Choice

Which type of asset-backed security is not affected by prepayment risk?

• A) auto loan aBS
• B) residential MBS
• C) Credit card receivable aBS

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Definitions:

Evaluating Alternative Solutions

The process of examining and comparing different options or approaches to address a problem or achieve a goal, in order to select the most suitable one.

Decision-making Process

The decision-making process involves identifying and choosing alternatives based on values, preferences, and beliefs of the decision-maker.

Preferred Course of Action

A specific strategy or plan that is favored over others for achieving a desired outcome or solving a particular problem.

Alternative Courses of Action

Various paths or strategies that can be taken to achieve a goal or resolve a problem.