In Simple Terms, a Mortgage-Backed Security Is

question 14

Multiple Choice

In simple terms, a mortgage-backed security is:

• A)A portfolio of mortgages sold to investors through publicly issued bonds
• B)A contract that transfers ownership of a lender's mortgages receivable
• C)A contract that transfers the risk of non-collection from mortgage originators to other investors
• D)All of the above
• E)(a)and (c)only

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Definitions:

Diatomic Elements

Molecules composed of only two atoms, of the same or different chemical elements.

Atoms

The basic units of matter and the defining structure of elements, consisting of a nucleus surrounded by electrons.

Systematic Name

A name given to compounds as per the rules determined by the International Union of Pure and Applied Chemistry (IUPAC).