Which of the Following Is NOT Characteristic of Commercial-Backed Mortgage

question 37

Multiple Choice

Which of the following is NOT characteristic of commercial-backed mortgage securities?

• A)The underlying mortgage pool represents a variety of different property types (retail,multifamily,etc.)and a specific geographical area
• B)The underlying mortgages have usually been outstanding for several years
• C)One of the primary issuers of such securities are insurance companies
• D)In general,the underlying mortgage pool for such securities contain fewer mortgages than are included in residential-backed mortgage pools

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Definitions:

Rational Decisions

The process of making choices that result in the optimal level of benefit or utility for an individual.

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to influence consumer behavior.

Behavioral Economics

explores how psychological, cognitive, emotional, cultural, and social factors affect economic decisions, challenging traditional economic theories that assume rational behavior.

Recognition Heuristic

A cognitive shortcut that involves making a decision based on the recognition of familiar names or entities instead of considering detailed information.