Which of the Following Explains Why Mortgages Weren't Considered Securities

question 126

Multiple Choice

Which of the following explains why mortgages weren't considered securities prior to 1970?

• A)The Federal Reserve Act of 1913 prohibited mortgages from being considered securities.An amendment to the Act was approved in 1970 that allowed mortgages to be considered securities.
• B)Until 1970,the average annual increase in housing prices did not allow the buying and selling of mortgages to be profitable.There has been a significant annual increase in housing prices and mortgage values since 1970.
• C)Congress passed a law in 1970 stipulating that mortgages could be classified as securities.
• D)Prior to 1970,mortgages were rarely resold in the secondary market.

Develop strategies for time management and balancing personal, academic, and professional responsibilities.

Understand the risks associated with substance misuse and over-the-counter medication abuse.

Recognize the signs of potential mental health issues and the importance of seeking professional help.

Evaluate personal health habits and develop strategies for improvement.

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Definitions:

Competence

The ability to do something successfully or efficiently, involving skills and knowledge.

Confidence

A feeling of self-assurance arising from an appreciation of one’s own abilities or qualities.

Mediocrity

The quality of being average or moderate in quality, not outstanding or poor.

Sincerity

The quality of being free from pretense, deceit, or hypocrisy; genuine honesty.