__________ are debt securities that are backed by a pool of standardized mortgages, have a low default risk, and provide a steady stream of income to the investor.

Question

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Mortgage-backed securities are backed by a pool of standardized mortgages, have a low default risk, and provide a steady stream of income to the investor. General obligation bonds are not backed by mortgages and have a higher risk of default. Mortgage bonds are backed by one specific mortgage, while collateral bonds may be backed by a variety of assets.

__________ Are Debt Securities That Are Backed by a Pool