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:

Red Scare

A period of intense fear or paranoia about communism and its potential spread in the United States, leading to widespread suspicion and discrimination against perceived communists.

Political Intolerance

The lack of willingness to allow or accept opposing political views, resulting in a potentially oppressive or hostile environment for differing political beliefs.

Russian Revolution

A series of political events in Russia in 1917 that led to the overthrow of the Tsarist autocracy and the establishment of a communist government.

Progressive

A political and social movement that advocates for reforms and improvements in society through government action.