Which of the Following Is True Concerning an Assumable Mortgage

question 122

Multiple Choice

Which of the following is true concerning an assumable mortgage?

• A)The aggregate percent of the mortgage pool that has been prepaid prior to the month under consideration.
• B)The mortgage contract is transferred from the seller to the buyer of a house.
• C)The required interest spread of a pass-through security over a treasury when prepayment risk is taken into account.
• D)A mortgage-backed bond issued in multiple classes or tranches.
• E)Bonds collateralized by a pool of assets.

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Definitions:

Explicit Collusion

A direct agreement among competitors to fix prices, limit production, allocate markets, or engage in other anticompetitive practices, typically illegal in nature.

Optimal Strategy

The best course of action a player or decision-maker can take in a game or decision-making scenario, considering the actions of other players or factors.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, considering the choices of other players. It represents a situation where no participant can gain by unilaterally changing their strategy.

Dominant Strategy

A strategy in game theory that is the best action for a player irrespective of what the opponent does.