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Can I have help finding the solutions to questions 1 and 2 on my practice guide. thank you 1) Collateralized Mortgage Obligation (CMO): (A) is
Can I have help finding the solutions to questions 1 and 2 on my practice guide. thank you
1) Collateralized Mortgage Obligation (CMO): (A) is a financial derivative that has no purpose other than to provide a tool for investors to speculate on the housing market. (B) can add economic efficiency to the housing market by introducing tranches that enable the level of risk of the assets to be matched with investor's preference for risk. (C) can only be issued by financial firms that are subject to govern- ment regulations. (D) provides insurance against default on a mortgage contract. 2) Fannie Mae and Freddie Mac: (A) were originally created as federal agencies designed to assist low income families in the purchase of homes. (B) originated as private firms whose mission was to increase liquid- ity in the housing market and increase home ownership in the United States. (C) were originally created as federal agencies designed to increase liquidity in the housing market and increase home ownership in the United States. (D) originated as private firms whose mission was to assist low in- come families in the purchase of homes Step by Step Solution
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