How Are Interest Payments on Mortgages Distributed to Investors Who

question 36

Essay

How are interest payments on mortgages distributed to investors who own mortgage-backed securities?

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Definitions:

Observational Learning

A learning process through which behaviors are acquired by watching and imitating others.

Primary Reinforcers

Stimuli that are naturally rewarding and satisfy basic biological needs, such as food, water, and warmth, and do not require learning to be effective.

Secondary Reinforcers

Stimuli that have acquired reinforcing properties through their association with primary reinforcers, such as money or praise.

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced, and in the absence of which that response is less likely to occur.