Choose the Correct Answer

question 69

Multiple Choice

Choose the correct answer:

• A)While pass-throughs and CMOs remain on banks and building societies balance sheets, mortgage-backed bonds (MBBs) remove mortgages from balance sheets as forms of off-balance-sheet securitisation.
• B)While pass-throughs and CMOs help banks and building societies remove mortgages from their balance sheets as forms of off-balance-sheet securitisation, mortgage-backed bonds (MBBs) normally remain on the balance sheet.
• C)Pass-throughs and CMOs are the same as mortgage-backed bonds (MBBs).
• D)None of the listed options are correct.

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Definitions:

Balance Per Books

The amount shown in a company's accounting records, as opposed to the actual cash balance or balance reported by a bank.

Cash Disbursement Transactions

Financial activities involving the payment of cash from a business to vendors, employees, or other entities.

Authorized

Refers to having official permission or approval, often in the context of legal or financial operations that have been ratified or sanctioned by a governing body or higher authority.