26-79 Which of the Following Best Explains the Term Burn-Out

question 75

Multiple Choice

26-79 Which of the following best explains the term burn-out factor?

• A)The percent of mortgage contract that is transferred from the seller to the buyer of a house.
• B)The required interest spread of a pass-through security over a treasury when prepayment risk is taken into account.
• C)The aggregate percent of the mortgage pool that has been prepaid prior to the month under consideration.
• D)A mortgage-backed bond issued in multiple classes or tranches.
• E)Bonds collateralized by a pool of assets.

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Definitions:

Active Role

The act of taking initiative, participating directly, and being engaged in activities or decisions.

Piaget

A Swiss psychologist known for his pioneering work in child development and cognitive theory.

Cause And Effect

A relationship where one event (the cause) leads to the occurrence of another event (the effect).

Preoperational Stage

A stage in Jean Piaget's theory of cognitive development where children from ages 2 to 7 learn through pretend play but struggle with logic and taking the point of view of other people.