A Mortgage-Backed Security Is a Bundle of Hundreds of Mortgages

question 146

True/False

A mortgage-backed security is a bundle of hundreds of mortgages which represents a claim on the monthly payments made on those mortgages.

---

Definitions:

Beneficiaries

Individuals or entities designated to receive benefits or assets from an estate, insurance policy, or trust.

Securities

Financial instruments that represent an ownership position, a creditor relationship, or rights to ownership, such as stocks, bonds, or options.

Clayton Act

A federal law enacted to amend the antitrust laws of the United States, preventing unfair practices in commerce.

Exempt

Exempt generally refers to being free from an obligation, duty, or requirement that others are subject to.