1 . One of the advantages of a financial institution selling mortgages is to allow that financial institution to better match its assets and liabilities.

True or False

2. The value of a call option on a stock increases if the underlying stock price rises.

True or False

3. Which of the following agencies provides payment insurance for pass-through securities?

a. Veterans Administration (VA)

b. Federal National Mortgage Association (Fannie Mae)

c. Federal Home Loan Mortgage Corporation (Freddie Mac)

d. Federal Housing Association (FHA)

e. Government National Mortgage Association (Ginnie Mae)