Prepayment Risk Means That Realized Cash Flows on Pass-Through Securities

question 112

True/False

Prepayment risk means that realized cash flows on pass-through securities may be more than expected cash flows.

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Definitions:

Fluid Intelligence

The intelligence quotient derived from tests involving tasks that require reasoning but not prior knowledge.

Crystallized Intelligence

The intelligence quotient derived from tests involving knowledge-based questions.

Spatial Intelligence

The intelligence quotient derived from tests of the ability to mentally rotate objects in order to solve problems.

Cross-Cultural

Cross-cultural refers to a comparative study or exploration of different cultures, with an aim to understand their differences and similarities, especially in behaviors, traditions, and values.