Which of the Following Is  NOT  a Common Type of Mortgage-Backed

question 31

Multiple Choice

Which of the following is  NOT  a common type of mortgage-backed security according to your text?

• A)FHLMA (Freddie Mac)participation certificates (PCs)
• B)collateralized mortgage obligations (CMOs)
• C)balloon-payment mortgage certificates
• D)private-label pass-through securities
• E)All of these are common types of mortgage pass-through securities.

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Definitions:

Average Product

The total output produced per unit of a resource employed.

Marginal Product

The extra production resulting from the use of one additional unit of a specific input while holding other inputs steady.

Total Cost

The sum of all costs associated with the production or provision of a good or service, including fixed and variable costs.

Variable Cost

Expenses that vary in relation to the amount of production or operations.