Asked by Nicole Guerrero on Apr 26, 2024
Verified
A mortgage-backed security is a bundle of hundreds of mortgages which represents a claim on the monthly payments made on those mortgages.
Mortgage-Backed Security
A claim on payments made on the many mortgages bundled into this financial instrument.
Monthly Payments
Regular payments made monthly, often in the context of loans or mortgages, covering interest and possibly part of the principal.
- Become familiar with the effect that financial instruments and changes in regulation have on banks and the overall economy.
Verified Answer
ST
shania tantyoApr 26, 2024
Final Answer :
True
Explanation :
A mortgage-backed security is indeed a bundle of mortgages that represent a claim on the monthly payments made on those mortgages.
Learning Objectives
- Become familiar with the effect that financial instruments and changes in regulation have on banks and the overall economy.
Related questions
Deregulation of Banks and Other Depository Institutions Allowed the FDIC ...
The Emergence of Mortgage-Backed Securities Provided Mortgage Brokers with an ...
The Emergence of the Subprime Mortgage Market Following the Recession ...
Statement I: Under the Depository Institutions Deregulation and Monetary Control ...
The Depository Institutions Deregulation and Monetary Control Act of 1980 ...