Which of the Following Is NOT Characteristic of Commercial-Backed Mortgage

question 37

Multiple Choice

Which of the following is NOT characteristic of commercial-backed mortgage securities?

• A)The underlying mortgage pool represents a variety of different property types (retail,multifamily,etc.)and a specific geographical area
• B)The underlying mortgages have usually been outstanding for several years
• C)One of the primary issuers of such securities are insurance companies
• D)In general,the underlying mortgage pool for such securities contain fewer mortgages than are included in residential-backed mortgage pools

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Definitions:

Average Cost Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Units

The basic quantities or measures used to quantify and track inventory, production, and sales.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of the inventory is performed at specific intervals and the cost of goods sold is calculated at the end.