Question
QUESTION 5 TRUE / FALSE. Conforming loan requirements are set by each bank and can vary widely. TRUE FALSE 2 points QUESTION 6 Which of
QUESTION 5
TRUE / FALSE. Conforming loan requirements are set by each bank and can vary widely.
| TRUE | ||
| FALSE |
2 points
QUESTION 6
Which of the following is NOT TRUE about Mortgage Backed Securities (MBS)?
| A. | MBS repays principal throughout the life of the investment | |
| B. | MBS are long duration assets that investors can match with long term liabilities | |
| C. | All MBS are safe assets | |
| D. | MBS provides liquidity for an otherwise illiquid asset | |
| E. | There are tax benefits associated with investing in MBS |
3 points
QUESTION 7
Which statement is true about Weighted Average Life and Weighted Average Maturity?
| A. | WAL is always strictly longer than WAM | |
| B. | In a positive amortization loan, WAL is longer than WAM | |
| C. | In an interest only loan WAL and WAM are the same | |
| D. | WAL is always strictly shorter than WAM | |
| E. | WAL is always the same as WAM |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
