Which One of the Following Correctly Applies to a Mortgage

question 49

Multiple Choice

Which one of the following correctly applies to a mortgage passthrough bond?

• A)The primary collateral for the bond is the underlying pool of mortgages.
• B)All interest received is immediately passed through while principal payments are held until the bond matures.
• C)Each bond represents one home mortgage.
• D)These bonds are created via a process known as mortgage collaring.
• E)All of these bonds are guaranteed by the full faith and credit of the U.S. government.

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Definitions:

Illegal Behavior

Actions or activities that violate laws or regulations.

Ethical Behavior

Acting in ways consistent with what society and individuals typically think are good values, involving honesty, fairness, and integrity.

Whistle-Blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Unethical Behavior

Actions that go against moral principles and professional standards, often causing harm or conflict.