Which of the Following Is Not True About So-Called Mortgage-Backed

question 63

Multiple Choice

Which of the following is not true about so-called mortgage-backed securities?

• A) Before the crisis, they were believed by many banks to be a way of reducing loan risks.
• B) Before the crisis, they played a major role in broadening home ownership in America.
• C) They were links that spread instability across many financial institutions.
• D) Their use was strongly discouraged by the Federal government.

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Definitions:

Median Family Income

The middle value of total income earned by a family, divided in such a way that half of the families earn less and the other half earns more.

Extended Family

A family unit that extends beyond the immediate family, including grandparents, aunts, uncles, and other relatives.

American Indian

Indigenous peoples of the Americas, particularly those who are recognized as the original inhabitants of the United States.

Elders

Older individuals, often respected for their wisdom and experience, who may hold a position of authority within a community or family.