The Main Difference Between an Open-End and Closed-End Mortgage Trust

question 32

Multiple Choice

The main difference between an open-end and closed-end mortgage trust indenture is:

• A) the mutual fund carries a no load fee.
• B) security can be diminished as an open-end trust indenture allows for unlimited bond issuance.
• C) security can be diminished as a closed-end trust indenture allows for unlimited bond issuance.
• D) the mortgage trust company does not have any security.

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Definitions:

Substitutes

Goods or services that can replace each other in use, affecting demand when their prices or other attributes change.

Demand

The quantity of a product or service consumers are willing and able to purchase at various prices.

Tax Revenue

The income that is gained by governments through taxation.

Government

A system or group of people governing an organized community, often a state.