Which One of the Following Is the Risk Associated with Receiving

question 69

Multiple Choice

Which one of the following is the risk associated with receiving a mortgage bond's principal payments sooner than anticipated?

• A)prepayment risk
• B)default risk
• C)amortized risk
• D)market risk
• E)seasoned risk

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Definitions:

English-As-A-Second-Language

Educational programs or instructions specifically designed for learners whose primary language is not English, aiming to improve their proficiency in English.

A Hedge

A protective barrier consisting of closely planted bushes or shrubs; metaphorically, a means to minimize risk or shield against losses.

A Disclaimer

A statement that denies something, especially responsibility, or sets forth a limitation to avoid legal or other potential liabilities.

Back-Channel Feedback

The small vocal and visual comments a listener makes while a speaker is talking, without taking over the speaking turn. This includes responses such as “Yeah,” “Huh?” “M-hmn,” head nods, brief smiles, and completions of the speaker’s words. Back-channel feedback is crucial to coordinate conversation smoothly.