Which of the Following Is NOT True Regarding Mortgaged-Backed Securities

question 58

Multiple Choice

Which of the following is NOT true regarding mortgaged-backed securities (MBS) ?

• A) MBS are sold to investors who can hold them as an investment or resell them to other investors.
• B) The MBS process allows the mortgage bank or other financial institution that made the original mortgage loan to get its money back out of the loan and lend it to someone else.
• C) Securitization provides liquidity to the mortgage market and makes it possible for banks to loan more money to home buyers.
• D) All of the above statements are true.

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Definitions:

Behavior Description

A method used in interviews asking candidates to describe past behavior as evidence of their ability to perform in a specific situation.

Emotionally Unstable

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Informed Decisions

Choices made based on a thorough understanding of relevant information, facts, and data.

Level Of Measurement

Describes the relationship among values assigned to objects and their quantitative attributes.