Which of the Following Explains Why Mortgages Weren't Considered Securities

question 126

Multiple Choice

Which of the following explains why mortgages weren't considered securities prior to 1970?

• A)The Federal Reserve Act of 1913 prohibited mortgages from being considered securities.An amendment to the Act was approved in 1970 that allowed mortgages to be considered securities.
• B)Until 1970,the average annual increase in housing prices did not allow the buying and selling of mortgages to be profitable.There has been a significant annual increase in housing prices and mortgage values since 1970.
• C)Congress passed a law in 1970 stipulating that mortgages could be classified as securities.
• D)Prior to 1970,mortgages were rarely resold in the secondary market.

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Definitions:

Culture's Information

The knowledge, beliefs, customs, practices, and social behavior of a particular nation, society, or group.

Inconsiderate Behavior

Actions or attitudes that show a lack of concern or thoughtfulness for the feelings or welfare of others.

Clipped Tone

A manner of speech characterized by abrupt endings and short vowel sounds, often perceived as curt or brusque.

Tradeoffs

The concept of giving up one benefit or advantage to gain another, often considered in decision-making processes.