One of the major problems associated with mortgage-backed securities is that
A) the principal portion of each payment is considered taxable income.
B) they are refundable.
C) they are self-liquidating.
D) they are serial issues.

Question

Quizplus · Accepted Answer

Mortgage-backed securities are self-liquidating because they are backed by mortgage payments, which include both interest and principal, gradually reducing the balance over time.

One of the Major Problems Associated with Mortgage-Backed Securities Is