In Simple Terms, a Mortgage-Backed Security Is

question 10

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) a portfolio of mortgages sold to investors through publicly issued bonds, and a contract that transfers the risk of non-collection from mortgage originators to other investors.
• E) All of these are correct.

---

Definitions:

Career Planning

The process whereby individuals set career goals and identify the means to achieve them, often with organizational support.

Job Analyses

The process of studying and collecting information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.

Reasonable Restrictive Covenants

Legal agreements used by employers to limit the ability of employees to engage in certain activities that might be detrimental to the business, deemed reasonable in scope, geography, and duration.

Employment Contract

A formal agreement between an employer and an employee that outlines the terms and conditions of employment, including duties, responsibilities, salary, and duration of employment.