A Collateralized Debt Obligation (Or CDO)

question 82

Multiple Choice

A collateralized debt obligation (or CDO)

• A)Is generally riskier than a single debt of an equal value
• B)Sells for a lower price than re-sales of individual mortgages that comprise them
• C)Is sold in the primary financial market
• D)Is a financial instrument that obscures the underlying risks of the mortgages that comprise them
• E)Is always a bad financial investment

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Definitions:

Financial Disadvantage

A state or condition where individuals or groups have less economic resources and opportunities than others in society.

Stepfamily Integration

The process by which members of a stepfamily adjust and blend their relationships, roles, and expectations to form a cohesive family unit.

Months

Units of time in calendars that approximate the natural period related to the motion of the Moon; used to measure longer periods of time than days and shorter than years.

Years

Units of time equal to 365 or 366 days, used in reference to age, history, or periods of time.