The Federal National Mortgage Association Reduced Interest Rates on Mortgages

question 27

Multiple Choice

The Federal National Mortgage Association reduced interest rates on mortgages relative to other securities in the mid-eighties by issuing:

• A) CMOs
• B) passthroughs and MBBs
• C) CMOs and passthroughs
• D) MBBs and CMOs

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Definitions:

Cultural Relativist

A view that moral or ethical systems, which vary from culture to culture, are all equally valid and no one system is really "better" than any other.

Ethical Relativist

Someone who believes that morality is relative to the norms of one's culture, meaning that what is considered moral in one society may be considered immoral in another.

Practices

Customary ways of operation or behavior in a particular area or field, often referred to as the actual application or use of an idea, belief, or method.

Cultures

The social behavior, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.