When a Borrower Pledges Financial Assets as Collateral for a Bond

question 57

Multiple Choice

When a borrower pledges financial assets as collateral for a bond it is called a(n)

• A) Mortgage bond.
• B) Equipment trust certificate.
• C) Mortgage pass-through security.
• D) Collateral trust bond.
• E) Collateralized mortgage obligation (CMO).

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Definitions:

People Speaking

Involves the communication or dialogue between individuals, highlighting the verbal exchange of ideas and information.

Voices

The sounds produced by humans and animals using their vocal cords, especially when speaking or singing.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, which develops in infants around the age of 8 to 12 months.

Representational Abilities

The cognitive ability to use symbols, language, and pictures to represent and understand the world.