Mortgage-Backed Securities Are Mainly 25-Year Fixed-Rate Bonds

question 109

True/False

Mortgage-backed securities are mainly 25-year fixed-rate bonds.

---

Definitions:

Mental Activity

Any cognitive process that involves thinking, reasoning, problem-solving, decision-making, or the processing of information.

Availability Heuristic

A cognitive shortcut that depends on the first examples that spring to mind when considering a particular subject, idea, approach, or choice.

Confirmation Bias

The disposition to seek, grasp, esteem, and recount information that confirms existing preconceptions or theories.

Belief Perseverance

The phenomenon where people hold onto their beliefs even when faced with evidence that contradicts or disproves them.