Which of the Following Is True About GNMA Pass-Throughs

question 35

Multiple Choice

Which of the following is true about GNMA pass-throughs?
I.They separate individual home mortgages into heterogeneous pools.
II.The purchaser of a GNMA receives monthly interest and principal payments received from payments made on the pool.
III.The banks that originated the mortgages continue to service them.
IV.The banks that originated the mortgages maintain ownership of them.

• A) II,III,and IV
• B) II and III
• C) I,II,and IV
• D) I,III,and IV
• E) I,II,III,and IV

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Definitions:

Short-run Economy

The period in which the quantities of at least one input, such as capital, is fixed and firms adjust only labor inputs to change output levels.

Money Supply Growth Rate

The speed at which available monetary resources in an economy grow over a determined time frame.

Short-run Phillips Curve

A graphical representation indicating an inverse relationship between the rate of inflation and the rate of unemployment in the short term.

Inflation

The measure of how quickly the general price level for products and services grows, resulting in reduced consumer purchasing ability.