Question
1. Which of the following is NOT true for a conventional fixed rate mortgage? It is fully amortizing. By half way through the term of
1. Which of the following is NOT true for a conventional fixed rate mortgage?
It is fully amortizing.
By half way through the term of the loan, the principal portion of the monthly payment is greater than the interest portion.
Interest payments early on are much greater than the principal payments.
Monthly payments are fixed.
2. Which one of these types of institutions most likely does NOT issue mortgage backed securities directly?
Fannie Mae
Freddie Mac
Ginnie Mae
A large depository institution with an investment banking subsidiary.
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
