What Are the Securities That Are Created When a Mortgage

question 53

Multiple Choice

What are the securities that are created when a mortgage pool is divided into a number of tranches called?

• A) split strips
• B) divided CMOs
• C) sequential CMOs
• D) indexed mortgage splits
• E) tranche pools

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Definitions:

Steady Growth

A consistent and uninterrupted increase in size, value, quantity, or extent over a period of time.

Exponential Smoothing

A time series forecasting method for univariate data that applies weighted averages of past observations, giving more weight to recent observations.

Long-term Trend

The persistent movement or direction in data over a long period, revealing a general pattern of change.

Short-term Predictions

Forecasts made over a relatively short period, typically focusing on immediate or near-future trends or events.