An asset-backed security backed by home mortgages is a:
A)mortgage-backed security.
B)primary home-backed security.
C)bond-backed security.
D)real estate-backed security.

Question

Quizplus · Accepted Answer

An asset-backed security (ABS) backed by home mortgages is commonly known as a mortgage-backed security (MBS). This is because the MBS is backed by a pool of home mortgages, where payments made by the borrowers are used to pay the interest and principal on the security.

An Asset-Backed Security Backed by Home Mortgages Is A