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

question 8

Multiple Choice

Which of the following explains why mortgages weren't considered securities in the United States 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.
• E)Between the end of WWII and 1970 mortgage lending was subject to large swings in volume and interest rates.

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Definitions:

Osteoarthritis

A degenerative joint disease causing cartilage breakdown in joints, leading to pain, swelling, and reduced motion in affected areas.

Tendinitis

Inflammation of a tendon, typically causing pain and tenderness near a joint.

Intermittent Claudication

A condition characterized by muscle pain or cramping in the legs or buttocks during exercise, caused by inadequate blood flow, commonly associated with peripheral artery disease.

Bulge Sign

A clinical test for knee effusion involving the application of pressure on the knee to detect fluid movement, indicating the presence of excess fluid in the knee joint.