When a Borrower Pledges Financial Assets as Collateral for a Bond

question 87

Multiple Choice

When a borrower pledges financial assets as collateral for a bond it is called a(n)

• A) mortgage bond.
• B) equipment trust certificate.
• C) mortgage pass-through security.
• D) collateral trust bond.
• E) collateralized mortgage obligation (CMO).

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Definitions:

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy, often within large organizations or governments.

Management Duties

The responsibilities held by individuals in managerial positions, including planning, organizing, leading, and controlling organizational resources to achieve specific goals.

Corrective Action

Measures taken to identify, eliminate, and prevent the recurrence of defects, errors, or issues in a process or product.

Total Product

The comprehensive output or result produced by a company, taking into account both tangible and intangible elements.