Which of the Below Statements Is TRUE

question 46

Multiple Choice

Which of the below statements is TRUE?

• A) The pass-through securities issued by Freddie Mac are referred to as Mortgage-Backed Securities; Fannie Mae uses the term Participation Certificate (PC) to describe its pass-through security.
• B) An investor who owns pass-through securities knows what the cash flow will be.
• C) A mortgage loan effectively grants the borrower the right to call the loan at a discount.
• D) The adverse consequence when mortgage rates decline is referred to as contraction risk.

Identify strategies and preventive tactics for managing burnout.

Differentiate between hindrance and challenge stressors and their impact on motivation and performance.

Understand the physiological and psychological responses to stress, including the fight-or-flight response.

Analyze the effects of stress on job creativity, self-esteem, and performance.

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Definitions:

Times Interest Earned

Times interest earned is a financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Interest Expense

The cost of borrowing money.

Income Tax Expense

The cost associated with income taxes owed to federal, state, or local governments, recognized in the accounting period in which the income was earned.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.