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Which of the following is most accurate regarding Mortgage-Backed Bonds (MBBs)? Select one: a. Mortgages collateralize MBBs, but are not directly related to the associated
Which of the following is most accurate regarding Mortgage-Backed Bonds (MBBs)?
Select one:
a. Mortgages collateralize MBBs, but are not directly related to the associated cash flows
b. They allow financial intuitions to remove mortgages from their balance sheet
c. MBBs usually have a lower credit rating than the financial institution issuing them
d. They insulate financial institutions from prepayment risk
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