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ololo11 [35]
3 years ago
8

An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market

rather than in an equal dollar amount of mortgage loans because:_________
a. mortgage backed securities eliminate prepayment risk for the investor.
b. mortgage backed securities diversify credit risk for the investor.
c. mortgage backed securities offer higher yields than individual mortgages.
d. mortgage backed securities returns are tax-exempt.
Business
1 answer:
kati45 [8]3 years ago
8 0

Answer:

b. mortgage backed securities diversify credit risk for the investor.

Explanation:

An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because <u>mortgage backed securities diversify credit risk for the investor.</u>

In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.

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Dr. G, the principal at Westside High School Academy, is worried that the students who win academic awards might also be more li
rosijanka [135]

No, Dr G has nothing to worry about because only 8 students won the academic as well as fine arts award out of 128 academic award winners. This corresponds to very low percentage of joint winners out of just academic award winners (0.0625%)

Explanation:

Total students in the Westside High School- 768

Winner of academic awards- 128

Winner of fine arts awards- 48

Students who won both awards- 8

Dr G pre assumption= Dr G was worried that winner of academic awards would win fine awards more likely.

But it seems that his assumtions are wrong since only 8 students out of 128 students won joint awards (meaning only 8 students won awards for fine arts as well as academic awards). Similarly, this corresponds to only 0.0625% of students winning academic awards as well as Fine arts awards.

8 0
3 years ago
Keegan and drew, spouses, have a checking account at gloria city national bank. the balance is $450,000. what is their protectio
Anastaziya [24]

Keegan and drew, spouses, have a checking account at gloria city national bank. the balance is $450,000. There is no coverage for Keegan and Drew their protection from sips of gloria city fails. Thus, option (c) is correct.

What is bank?

The term bank refers to the financial institution offering the services related to the term money. The bank is manage financial system to handling accounts and manage the cash. The bank is provided different facilities such as cash transaction, accounts on bank, deposition, check, provided locker facility, loans and provided different schemes.

Nowadays, technology are advanced, the bank are shift in online transaction. The bank details are check on single click. A person proper details add to bank account. A person is required to check bank balance they easily check with security. But the check another person bank account are take to legal action.

Instead of managing banks, the SIPC deals with broker-dealers. Drew and Keegan's defense against gloria city sips fails.

Therefore, option (c) is correct.

Learn more about on bank, here:

brainly.com/question/14042269

#SPJ4

The missing option of the questions are:-

A) $250,000—the total maximum coverage per account

B) $450,000—split evenly between the two people

C) There is no coverage for Keegan and Drew

D) $450,000—$250,000 for Keegan and $200,000 for Drew

5 0
1 year ago
Sunland Construction Company uses the percentage-of-completion method of accounting. In 2021, Sunland began work on a contract i
Westkost [7]

Answer:

$3900000

Explanation:

The gross profit is the difference between the revenue earned during the year and the cost of sales. The percentage of completion method is one in which the revenue is recognized based on the cost incurred to date on the project.

Revenue to be recognized in 2021

= $15600000/($15600000 + $9600000) * $31500000

= $19500000

Though the billings for the year is lower, the difference may be recognized as unbilled receivable.

As such, the gross profit for the year

= $19500000 - $15600000

= $3900000

5 0
3 years ago
Select all that apply. The accountant for Harper Plumbing Company failed to record the following transaction in the journal: Bil
satela [25.4K]

Answer:

A : Net income will be understated and

F. Assets will be understated on the balance sheet.

Explanation:

'Billed customers $1,400 for services performed' will be journalised as:

Cash A/c Dr to Sale/Income A/c Cr.

So; Not recording this transaction will understate the income & asset i.e cash. Income will be understated in the P&L A/C, assets will be understated in the Balance Sheet.

Other options are inapt because: Assets & Income overstatement are opposites of correct answer. Journal & ledger will be balanced because the entire entry is not recorded & its both debit & credit aspects have been omitted.

4 0
3 years ago
Navy Seals go through extremely difficult training. Those who succeed becomemembers of one of the most elite fighting units in t
Gemiola [76]

Answer:

The correct answer is letter "A": cohesion.

Explanation:

Cohesion refers to property among individuals by which they complement each other. These individuals have a certain knowledge of one another that allows them to have a clear idea of how their behavior is, then, they try to help among them to be more as a team than prioritizing self success. Cohesion in teams is a determinant factor that could lead them to success or failure.

4 0
3 years ago
Read 2 more answers
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