The best answer is D. Agency CMOs are created by Ginnie Mae, Fannie Mae, or Freddie Mac, using their own mortgage backed securities (MBSs) as the underlying collateral. The __________ disburses funds to state and local governments for participation in national programs. 1 business day in clearing house fundsC. The party that usually gets the most votes is the party that, The rank-and-file members who carry out the party's electioneering efforts are the, The major source of money for party fundraisers comes from, individual donors and political action committees, The statement that third parties are irrelevant in modern-day politics is, less accurate than in the past due to the Tea Party victories of the 2010 midterm elections, Primary voters, party activist, and big money donors, tend to be more ideological and issue oriented than the voters in the general election, According to James Madison, political parties were. Which of the following is NOT true regarding issue positions of the major parties? They are sold at auction by the Treasury on an "as needed" basis to meet unexpected cash shortfalls, so they are not part of the regular auction cycle. c. When the bond matures, the holder receives the higher principal amount. Therefore, both PACs and TACs provide "call protection" against prepayments during period of falling interest rates. This is true because when the certificate was purchased, assume that the expected life of the underlying 15 year pool (for example) was 12 years. All of the following statements are true EXCEPT: Select one: a. The last interest payment was made on February 1st. Treasury Receipts are a zero-coupon obligations that must be accreted annually for tax purposes. I and IVC. B Social studies; asked by brinao; 26 views; 0 answers; Another one. devolution. differing tranches will be offered at differing yields, D. each tranche has the same level of market risk. II and IV onlyC. I, II, IVD. B. All of the following statements incorrectly refer to the concepts in the Conceptual Framework except a. Newer CMOs divide the tranches into PAC tranches and Companion tranches. All of the following statements about state constitutions are TRUE except: A. Towing. FAIR means Fair Access to Insurance Requirements B. A "derivative" product is one whose value is "derived" via a "formula" from an underlying investment. Regarding the Student Loan Marketing Association (Sallie Mae) which of the following statements are TRUE?I Sallie Mae is a privatized agencyII Sallie Mae is wholly owned by the U.S. GovernmentIII Sallie Mae stock is listed and tradesIV Sallie Mae stock does not trade A. I and IIIB. There is minimal marketability riskC. this account. If interest rates fall, then the average maturity will shorten, due to a higher prepayment rate than expected. Constitutionally, which two sets of powers do state governments have? Which of the following statements are TRUE about CMOs?I CMO issues have a serial structureII CMO issues are rated AAAIII CMO issues are more accessible to individual investors than regular pass-through certificatesIV CMO issues have a lower level of market risk than regular pass-through certificates A. I and II onlyB. All of the following are TRUE about the courts throughout the states EXCEPT: 3) The credit rating of a "Private Label" CMO is established by a credit ratings agency such as Moody's based on the quality of the underlying collateral and is not automatically AAA. The interest rate placed on a TIPS (Treasury Inflation Protection Security) is less than the rate on an equivalent maturity Treasury Bond. d. This is true because when the certificate was purchased, assume that the average life of the underlying 15 year pool (for example) was 12 years. Credit risk for CMO tranches is the same for all tranches, since it is based on the quality of the underlying mortgage backed securities held in trust. Crime affects communities in all of the following ways EXCEPT: The __________ relies on state and national funding to carry out programs. publically denouncing the more extreme wing of their own party. The price movements of IOs are counterintuitive! Personal Property Coverage Freddie Mac is an issuer of mortgage backed pass-through certificatesC. The best answer is B. sole proprietorships have the most freedom from government regulations. are actively traded in the secondary market. This means that the opportunity cost of external equity capital is about 15 percentage points higher than that of retained earnings." The best answer is B. Surrounding this tranche are 1 or 2 Companion tranches. b. This is true because when the certificate was purchased, assume that the average life of the underlying 15 year pool (for example) was 12 years. I and IVC. Notice that the fact that the bond is trading at a premium is irrelevant - the interest payment is based on the stated interest rate times par value. have previously assembled a winning coalition in their district. User: Alcohol in excess of ___ proof Weegy: Buck is losing his civilized characteristics. The spread is $5.00 per $1,000. If the maturity shortens, then for a given fall in interest rates, the price will rise slower. Treasury BondsD. Control accounts are also referred to as cost accountsC. are redeemed at par plus interest earnedC. I and IVC. Municipal bondD. II and IV. When interest rates rise, the price of the tranche fallsB. Interest payments are still made pro-rata to all tranches, but principal repayments made earlier than that required to retire the PAC at its maturity are applied to the Companion class; while principal repayments made later than expected are applied to the PAC maturity before payments are made to the Companion class. All of the following statements are true regarding this question except which one? a Supreme Court ruling 1.4%B. Lateef. II and IIID. The __________ pays local governments to help implement state programs. In the most common form of city government, what functions as the executive branch? Jozeal. B. Non-government organizations are companies that are not for profit. All of the following statements regarding budgeting is true except: <p>a. Budgeting helps managersdetermine the resources needed to meet their goals andobjectives.b. The best answer is D. CMOs have a lower level of market risk (risk of price volatility due to movements in market interest rates) than do mortgage backed pass-through certificates. marketability riskC. These are issued at a deep discount to face.Its price moves just like a conventional long term deep discount bond. \text {Cash} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 61,000\\ (Set up in combination symbols; do not work out.). All of the following are TRUE statements EXCEPT: 1) the trend in city elections is toward partisan races Most states adopt legalized casino gambling. Agency CMOs carry the direct or implied guarantee of the U.S. Government while Private Label CMOs do not have such a guaranteeB. D) 3. A customer who wishes to sell 1 Treasury Bill will receive:A.a dollar price quoted to a 4.90 basisB.a dollar price quoted to a 5.00 basisC.$4,900D.$5,000. Which of the following is not true about the FAIR plan? CMO tranch holders are subject to prepayment risk - the risk that the expected life of the tranch becomes much shorter due to a decline in interest rates causing homeowners to refinance and prepay their existing mortgages earlier than expected. d. 15 year standard lifeD. A PAC offers protection against both prepayment risk (prepayments go to the Companion class first) and extension risk (later than expected payments are applied to the PAC before payments are made to the Companion class). While balancing your Lun des accessoires de tlphones portables les plus achets est le film protecteur cran. Treasury NotesC. Federal ReserveC. A customer who wishes to buy 1 Treasury Bill will pay: A. a dollar price quoted to a 5.90 basisB. A customer buys 5M of 3 3/4% Treasury Bonds at 95-5. b. Acompanhe-nos: bonsall oaks development Facebook. {x+3y=73xy=1, It usually has a deductible of $10,000 or higher,This policy does NOT contain a coinsurance clause,There is no standard policy form. The nominal interest rate on a TIPS is: A. the same as the rate on an equivalent maturity Treasury BondB. Search for an answer or ask Weegy. c. Changes from one era to another are often marked by a critical election. d. U.S. laws make it difficult for third parties to get placed on the ballot. Treasury STRIPS are government bonds that are "stripped" of coupons. If it is an agency CMO created by Ginnie Mae, the securities have the direct backing of the U.S. Government; if the agency CMO is created by Fannie Mae or Freddie Mac, it has the implied backing of the U.S. Government. 26 weeksD. Cooperative federalism ended dual federalism. Which statements are TRUE about TIPS?I The coupon rate is less than the rate on an equivalent maturity Treasury BondII The coupon rate is more than the rate on an equivalent maturity Treasury BondIII The coupon rate is a market approximation of the real interest rateIV The coupon rate is a market approximation of the discount rate A. I and IIIB. A. Prepare a schedule of the company's current assets and current liabilities. Do public opinions polls show this party's platform was the one supported by the voters at the time it was written? II and IV. e. the voters became less important in the nomination process. Effective exercise program management involves all of the following except: Limiting the exercise cycle to a single fiscal year. Surrounding this tranche are 1 or 2 Companion tranches. Fannie Mae (FNMA) and Freddie Mac (FHLMC) issue mortgage-backed pass through certificates. All of the following statements regarding flood insurance are true, except: A deductible only applies to loss of contents. (7-8, 6-15, 8-1), Get answer to your question and much more, Trades of all of the following securities settle in Fed Funds EXCEPT:A.U.S. d. The pure interest rate is a theoretical interest rate that will be paid when there is no marketability risk and no credit risk. What is meant by action alerts and electronic petitions? A. I, II, III, IV. Treasury notes and bonds pay interest semi-annually; Treasury Strips are original issue discount Treasury obligations. This "prepayment speed assumption" is used to "guesstimate" the expected life of a mortgage backed pass-through certificate. The best answer is A. However, 30 year T-Receipts will trade until they all mature. subject to Federal income tax, but exempt from State and Local tax, D. exempt from both Federal and State and Local income tax. 20/3 When this interest is received by the certificate holder, both the federal and state government want to recapture this interest income and tax it. Since 1 Basis Point = .01% = $.10, 140 Basis Points = 1.40% = $14.00. Weve got your back. II and IV. I, II, III, IV. The formula for current yield is:Annual Income----------------------- = Current YieldMarket Price $45 (per $1,000 face amount)-------------------------------------------- = 4.43% $1,015 (per $1,000 face amount), If interest rates are rising rapidly, which U.S. Government debt prices would be MOST volatile? Answer: A. Because CMO issues are divided into tranches, each specific tranche has a more certain repayment date, as compared to owning a mortgage backed pass-through certificate. The reason why the TIPS sells at a lower coupon rate is that, every year, the principal amount is adjusted upwards by that year's inflation rate. Each party should act in a polarized fashion to such a. Republicans and Democrats have become more consistent with respect to their ideologies. Because CMO issues are divided into tranches, each specific tranche has a more certain repayment date, as compared to owning a mortgage backed pass-through certificate. . Unlike regular bonds, where when interest rates rise, prices fall, with an IO, when interest rates rise, prices rise! a. Democrats want "more services" over "cutting government spending." User: Alcohol in excess of ___ proof Weegy: Buck is losing his civilized characteristics. In the 1930s and subsequent decades, the ______ became the primary constitutional basis for national government regulation. A. Which underlying policy is not required by a personal umbrella policy? B) investors own an undivided interest in a pool of mortgages. In effect, the maturity will shorten and the investor will be returned principal faster, which will have to be reinvested at lower current rates - another example of reinvestment risk.The rate of homeowner defaults has no effect on the principal repayments to be received because the Agency guarantees principal repayment - making Choice B incorrect.Maturities will only extend if market interest rates rise and homeowners stay in their houses (they don't move because new mortgages are more expensive), and principal is repaid more slowly than expected. The American public strongly supports a two-party system. Office of the Comptroller of Currency. Periodic payments; Immediate annuity C. Periodic payments; Deferred annuity D. Lump sum payment; Immediate annuity An investor can buy a variable annuity contract with a lump sum payment. A mortgage backed security that is backed by an underlying pool of 30 year mortgages has an expected life of 10 years. c. Treasury bill prices are fallingB. 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