The FDIC is concerned about issuance of mortgage-backed bonds (MBBs) because
A) the FDIC is concerned about investors' prepayment risk.
B) MBBs increase deposit insurance premiums.
C) the process takes loans off the balance sheet and replaces them with liabilities.
D) the process reduces the amount of assets available to back insured deposits.
E) None of the options are correct.
Correct Answer:
Verified
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