_______________________________ Redirect the Principal and Interest Payments of Mortgage-Backed Securities

question 81

Multiple Choice

_______________________________ redirect the principal and interest payments of mortgage-backed securities to various classes of bondholders, thereby creating financial instruments with varying prepayment risks.

• A)Securitizations
• B)Collateralized mortgage obligations
• C)VA and FHA insured mortgages
• D)Secondary markets

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Definitions:

Lying By Commission

The act of intentionally providing false information or statements.

Intuitive Style

A way of decision-making or problem-solving based on instinctual feeling rather than analytical reasoning.

Thinking Style

The characteristic manner by which an individual processes information, makes decisions, and solves problems, often influenced by cognitive and personality factors.

Nonprogrammed Decisions

Decisions made to handle unique, non-recurring or novel situations, often requiring creative problem-solving.