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:

Supplies Used

The cost of supplies consumed during a specific period, often recorded as an expense on the income statement.

Expense

Expense is the cost of operations that a company incurs to generate revenue, encompassing everything from rent and salaries to utilities and materials.

Periodic Inventory Method

An accounting method which involves physically counting the inventory at specific intervals to determine the cost of goods sold and the ending inventory balance.