Which mortgage instruments meet the definitions provided below?
a. A home mortgage loan under which some of the terms of the loan, such as the loan rate or maturity of the loan, varies as market conditions change.
b. A mortgage loan that begins with an adjustable loan rate that can be switched later to a fixed loan rate.
c. Debt securities backed by pools of mortgage loans.
d. Mortgage-backed securities issued in a range of maturity classes so that prepayment risk can be more easily selected to match an investor's particular investment goals.

Question

Which mortgage instruments meet the definitions provided below?
a. A home mortgage loan under which some of the terms of the loan, such as the loan rate or maturity of the loan, varies as market conditions change. 
b. A mortgage loan that begins with an adjustable loan rate that can be switched later to a fixed loan rate. 
c. Debt securities backed by pools of mortgage loans. 
d. Mortgage-backed securities issued in a range of maturity classes so that prepayment risk can be more easily selected to match an investor's particular investment goals.

Quizplus · Accepted Answer

The Answer of Which mortgage instruments meet the definitions provided below?
a. A home mortgage loan under which some of the terms of the loan, such as the loan rate or maturity of the loan, varies as market conditions change. 
b. A mortgage loan that begins with an adjustable loan rate that can be switched later to a fixed loan rate. 
c. Debt securities backed by pools of mortgage loans. 
d. Mortgage-backed securities issued in a range of maturity classes so that prepayment risk can be more easily selected to match an investor's particular investment goals.

Which Mortgage Instruments Meet the Definitions Provided Below