Instruments That Have Been Securitized Include

question 49

Multiple Choice

Instruments that have been securitized include:

• A) mortgage-backed securities held by government-sponsored enterprises.
• B) car loans and student loans.
• C) credit card debt.
• D) all of the answers given are correct.

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Definitions:

Sales Tax

A tax imposed by a government on sales of goods and services, collected by the retailer and passed on to the government.

Tax System

The structured way in which taxes are imposed in a country, including the collection of taxes from individuals and businesses.

Progressive

Referring to a tax system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a higher percentage of their income in taxes.

Regressive

A term often used to describe a tax system where the tax rate decreases as the taxable amount increases, effectively placing a greater burden on those with lower incomes.