The Sum of the Market Values of All the Classes

question 45

Multiple Choice

The sum of the market values of all the classes of a CMO is greater than the total value of the GNMA pass-throughs backing the CMO because

• A)the CMO has less credit risk than the pass-through.
• B)CMO investors can choose their degree of prepayment protection.
• C)the government guarantees CMOs' performance.
• D)CMOs have a more favorable tax status than pass-throughs.
• E)CMO investors have no prepayment risk.

---

Definitions:

Increasing Client Dependence

A condition where clients become progressively more reliant on their service providers, often seen as an unethical practice in therapeutic contexts.

Case Management

The process of organizing and coordinating services and resources for individuals with specific needs, often in healthcare, social work, or human services settings.

Facilitating Interpersonal Relationships

This refers to the process or actions taken to help improve communication and understanding between individuals, enhancing their relationship.

Case Manager

A case manager is a professional who coordinates care and resources for individuals with long-term health issues, ensuring they receive necessary services.