Which of the Following Is NOT Characteristic of Commercial-Backed Mortgage

question 37

Multiple Choice

Which of the following is NOT characteristic of commercial-backed mortgage securities?

• A)The underlying mortgage pool represents a variety of different property types (retail,multifamily,etc.)and a specific geographical area
• B)The underlying mortgages have usually been outstanding for several years
• C)One of the primary issuers of such securities are insurance companies
• D)In general,the underlying mortgage pool for such securities contain fewer mortgages than are included in residential-backed mortgage pools

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Definitions:

Government Intervention

Actions taken by government to affect the economy, markets or societal issues, which can include regulations, subsidies, and taxes.

Positive Externalities

These are benefits that a transaction or activity provides to those not involved in the transaction or activity.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction that they were not directly involved in.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, typically resulting from increased production where the cost per unit of output drops as scale increases.