all of the following statements are true except government

Ginnie Mae Pass through certificates are backed by the faith and credit of both GNMA and the U.S. Government. This avoids having to pay tax each year on the upwards principal adjustment.). C) they are always directly backed by the federal government. Wahab visited a diferent Wells Fargo branch and D D II and IV. 1400%. These include Treasury Notes, Treasury Bonds, Corporate Bonds, and Municipal Bonds. All of the following statements are true about "plain vanilla" CMO tranches EXCEPT: A. each tranche has a different maturityB. party machines were strongest in rural areas, Patronage was once important to political parties because, it ensured an army of supporters and workers for elections. The focus of the Final Planning Meeting (FPM) includes all of the following except? If it is not reasonable, state what error was made. C. Non-government organizations identify with a specific government. Therefore, both PACs and TACs provide "call protection" against prepayments during period of falling interest rates. Give the BNAT exam to get a 100% scholarship for BYJUS coursesNo worries! U.S. Government Agency Securities have an implicit backing by the U.S. GovernmentC. South Carolina The minimum denomination on a mortgage backed pass through certificate is: A. sole. TACs do not offer the same degree of protection against "extension risk" as do PACs during periods of rising interest rates - hence their prices will be more volatile during such periods. The West judy norton children; court ordered community service california A TAC bond is designed to pay a "target" amount of principal each month. Personal injury is not covered. The right to vote was available. It usually has a deductible of $10,000 or higher I, II, III, IV, The best answer is B. c. Which Treasury security is NOT sold on a regular auction schedule? II and IV. Which of the following statements about renewable and. They have become an impediment to the operation of modern democracy, In contrast to the ideas of James Madison, political observers today argue that political parties, are essential to the maintenance of democracy, The positive aspect of partisanship is that it, keeps politicians honest and allows the best political ideas and policies to emerge, The party organization is essential because it. A CMBs are sold at a discount to parC. D. (TIPS are usually purchased in tax qualified retirement plans that are tax-deferred. D Real Estate Investment TrustsB. c. For contents to be covered, they must be inside a fully enclosed building Specific minimum limits for underlying coverage are required All of the following statements are true regarding this question except which one? Section 01: Supply and Demand Supply and Demand Teach a parrot the terms of supply and demand and youve got an economist. Each tranche, in effect, represents a differing expected maturity, hence each tranche has a different level of market risk. A customer who wishes to buy will pay the "Ask" of 5.90. All of the following are true of the Personal Jewelry Floater, except: Budgeting is a key ingredient in good decision-making.c. d. Write Your Own a majority of states do not limit campaign contributions. b. they are divided between a central government and regional, or subdivisional, governments. The Northeast A government bond dealer is making good delivery to another government dealer. b. T-Bills have a maximum maturity of 52 weeks, and thus will not provide income over many years. They do not enjoy a special relationship with the Federal Reserve. any business dealings between legally incorporated organizations. II and IIID. A 26 weeksD. For most investors this is too much money to invest, so they buy shares of a mutual fund that invests in these instruments instead. D. State governments rely on national government to provide funds for education. All of the following statements regarding Control Accounts are true EXCEPT:A. General Obligation bonds. d. There is little reinvestment risk with U.S. Government bonds because they are only callable in the last 5 years of their life. d. All of the following are true regarding DIC policies, except: Homeowners will extend the anticipated repayment date of mortgages:I when interest rates fallII when interest rates riseIII in order to refinance at higher ratesIV in order to avoid refinancing at higher rates A. I and IIIB. each tranche has a different level of interest rate risk. Jacob, after setting the objectives and benchmarks, assigns clearly-defined tasks to his teammates to achieve the desired goal The main reason for prepayments when interest rates have risen is that the homeowner has moved, and the house was sold. Expanded authority of the national government has traditionally been preferred by II and IIID. A. Treasury Stock. Do public opinions polls show this party's platform was the one supported by the voters at the time it was written? $187.50C. Once the Treasury started issuing STRIPS in 1986, there was no need for the "middleman" anymore. . In such an investment, one owns a trust unit; however the unit does not represent a undivided ownership interest in the underlying real estate or mortgages. For example, a 30 year Treasury Bond might have a coupon rate of 4%; but a 30 year TIPS has a coupon rate of 2.75%. B Market value added (MVA); economic value added (EVA). III and IV onlyC. According to "Tip" O'Neil, "All politics is __________.". Throughout American history the balance of parties has usually resulted in different parties controlling the executive and legislative branches of the federal government. Which statement is false ? b. Government in America: Elections and Updates Edition, George C. Edwards III, Martin P. Wattenberg, Robert L. Lineberry, Christina Dejong, Christopher E. Smith, George F Cole. The democratic party has become more liberal and the Republican party more conservative because of the, movement of conservative, southern Democrats to the Republican party, Parties appeal to moderate voters by all of the following EXCEPT. Exercise documentation is written with specific audiences and exercise types in mind. a. The annual accretion amount is subject to Federal income tax each year, as the underlying securities are U.S. Which CMO tranche will be offered at the lowest yield?A. federal mandates new legislation II and IIID. $4,914.05C. Three-fourths of both states' legislators must approve the agreement. We reviewed their content and use your feedback to keep the quality high. a. Find the xxx and yyy coordinates of all inflection points. Which of the following statements is NOT true_____ AThe sensor is multi-functional. Agency CMOs are backed by underlying mortgage backed pass-through certificates issued by that agency, while Private Label CMOs are backed only by mortgage backed securities issued by private lendersC. I and IVC. The reason why the TIPS sells at a lower coupon rate is that, every year, the principal amount is adjusted upwards by that year's inflation rate. a. providing the bulk of the money candidates use to run for office. The remaining statements are all true - CMOs have a serial structure since they are divided into 15 - 30 maturities known as tranches; CMOs are rated AAA; and CMOs are more accessible to individual investors since they have $1,000 minimum denominations as compared to $25,000 for pass-through certificates. a. All of the following statements regarding collateralized mortgage obligations are true EXCEPT: A. varying maturities are available to meet a wide variety of investor needsB. the maturity is 1 year or less, D. payment of interest and principal on the underlying security is guaranteed by the U.S. Government. Treasury STRIPS are government bonds that are "stripped" of coupons. Weegy: 15 ? prepayment speed assumptionC. Save Page Now. $25 per $1,000. I and IIC. ", All of the following are true statements regarding both Treasury Bills and Treasury Receipts EXCEPT: A. interest is paid at maturityB. = 2 5/20 c. Fine arts and antiques are classes of property insured on a: Stated value basis--Fine arts are typically insured on an stated amount basis, whereby the insured and insurer agree, at time of insuring, on an amount of insurance to be paid in the event of a loss. Thus, the PAC class is given a more certain maturity date and hence lower prepayment risk; while the Companion classes have a higher level of prepayment risk if interest rates drop; and they have a higher level of so-called "extension risk" - the risk that the maturity may be longer than expected, if interest rates rise. d. II and IV. commerce clause Is not subject to any deductible exempt from Federal income tax, but subject to State and Local taxC. Because interest will now be paid for a longer than expected period, the price rises. C Policies are usually written in increments of one million e. party base. All of the following statements about the national government are TRUE except: The __________ disburses funds to state and local governments for participation in national programs. Mortgage backed pass-through certificates are "paid off" in a shorter time frame than the full life of the underlying mortgages. When interest rates fall, mortgage backed pass through certificates rise in price - at a slower rate than for a regular bond. Interest payments are still made pro-rata to all tranches, but principal repayments made earlier than that required to retire the PAC at its maturity are applied to the Companion class; while principal repayments made later than expected are applied to the PAC maturity before payments are made to the Companion class. Because the MBSs are AAA rated, the CMOs created from them are AAA rated as well. d. All of the following statements are true about CMOs EXCEPT: A. CMO issues have a serial structureB. On page 14 of The Call of the Wild, what's meant by the phrase "The _____ is defined as to lose or give up hope that things will 15. c. The Midwest Coverage is written on a replacement cost basis--Coverage is written on a 'valued' basis. The principal portion of a fixed rate mortgage makes smaller payments in the early years, and larger payments in the later years. A model of federalism in which the states and the national government work together to solve problems is called a. Agency bondsC.GNMA Pass-Through certificatesD.General Obligation bonds. a. Because the companion absorbs both of these risks, it has the greatest risk and trades at the highest yield. U.S. Government Agency Securities trade flat, D. U.S. Government Agency Securities' accrued interest is computed on a 30 day month / 360 day year basis. b. the decision allowed the federal government to grow and expand. It has a 90-day automatic coverage for newly acquired items. can only be decided by the states. The best answer is A. Which statements are TRUE regarding the principal repayments for Companion CMO tranches?I Principal repayments made earlier than expected are applied to the Companion class prior to being applied to the Planned Amortization classII Principal repayments made earlier than expected are applied to the Planned Amortization class prior to being applied to the Companion classIII Principal repayments made later than expected are applied to the Companion class prior to being applied to the Planned Amortization classIV Principal repayments made later than expected are applied to the Planned Amortization class prior to being applied to the Companion class A. I and IIIB. This is a long term zero coupon obligation with a "locked in" rate of return over the life of the bond (thus, it is not subject to reinvestment risk). Which statement is false regarding the National Flood Insurance Program? They are sold in $100 minimums at a discount to par value, just like Treasury Bills. All of the following statements are true regarding Treasury STRIPS EXCEPT: A. interest earned is subject to reinvestment riskB. II and IV. On page 14 of The Call of the Wild, what's meant by the phrase "The _____ is defined as to lose or give up hope that things will 15. I and IVC. A. A Homeowners Policy I and IVC. D. the right to a policy loan applies to term and permanent insurance policies. with Wells Fargo Bank. Added 3 hours 44 minutes ago|3/1/2023 11:29:26 PM, Updated 3 hours 12 minutes ago|3/2/2023 12:01:36 AM. Haydn's opus 33 string quartets were first performed for Only interest paying obligations are subject to reinvestment risk - the risk that as interest payments are received, the monies can only be reinvested at lower rates if interest rates have dropped. Mobile Home Insurance includes all of the following, except: Coverage C - Personal Property is generally written at 50% of Coverage A-Coverage C - Personal Property is generally written at 40% of Coverage A, instead of at 50%. b. Protection and Indemnity Under a Flood Policy, protection is provided to property that is on normally dry land annually. The discount earned over the life of the bond is the "interest income.". B A newer version of a CMO has a more sophisticated scheme for allocating cash flows. A $1,000 par Treasury Note is quoted at 100-1 - 100-9. A. All of the following statements are true regarding non-government organizations EXCEPT: A. Non-government organizations aid in human interests. For the word puzzle clue of all of the following statements about france are true except, the Sporcle Puzzle Library found the following results.Explore more crossword clues and answers by clicking on the results or quizzes. Since this is regular way settlement, the trade settles next business day on Friday, May 18th. Municipal bondD. II and IIID. $4,942.19D. Added 3 hours 36 minutes ago|3/1/2023 11:37:49 PM. Claims are settled on a replacement cost basis Get an answer. A. Conversely, when interest rates fall (prepayment risk) the principal is being paid back at an earlier than expected date, so less interest is being received and the price falls (if interest rates fall drastically, the holder might get less interest back than what was originally invested). User: 8. {x+3y=73xy=1\left\{\begin{array}{l}{x+3 y=7} \\ {3 x-y=1}\end{array}\right. program grants II and IV. $4,915.50C. But you must select the "best" of the choices offered! C. Under cooperative federalism, different levels of government work together on programs. PACs protect against extension risk, by shifting this risk to an associated Companion tranche. states' rights, On December 20, 1860, ______ formally repealed its ratification of the Constitution and withdrew from the Union. Treasury bill prices are fallingB. All of the following are true of a Difference in Conditions Policy, except: Because a PAC is relieved of both of these risks, it has the lowest risk and trades at the lowest yield. All of the following would be considered examples of derivative products EXCEPT: A. PAC trancheB. d. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Sallie Mae is an agency that is "privatized." marketability riskC. II and IV. The spread is $4.00 per $1,000D. For example, there may be 10 tranches in the pool, with the first tranche having an expected life of 1-2 years, the second tranche having an expected life of 3-5 years, the third tranche having an expected life of 5-7 years, etc. It includes the perils of fire and extended coverage Which statement is TRUE regarding the tax treatment of the annual adjustment to the principal amount of a Treasury Inflation Protection Security? b. gives to the federal government all powers not specifically designated in the Constitution. The reason why the TIPS sells at a lower coupon rate is that, every year, the principal amount is adjusted upwards by that year's inflation rate. Its stock was listed for trading on the NYSE, but Fannie went "bust" in 2008 after purchasing too many "sub prime" mortgages and was placed into government conservatorship. Since all of the choices have the same maturity, this is not a factor. The Scheduled Personal Property Endorsement--The PAF and the Scheduled Personal Property Endorsement to the Homeowners Policy are nearly identical. I and IVC. 20/3 b. An Outboard Policy. Market interest rate movements have no effect on the stated interest rate paid by the security; and would not affect the credit rating of the issue. a. Democrats want "more services" over "cutting government spending." 6 2/3 If prepayments increase, they are made to the Companion class first. 10 year Double Barreled BondsB. The spread is: A. Furthermore, as interest rates drop, the value of the fixed income stream received from those mortgages increases, so the market value of the security will increase. Newer CMOs divide the tranches into PAC tranches and Companion tranches. If the maturity lengthens, then for a given rise in interest rates, the price will fall faster.When interest rates fall, mortgage backed pass through certificates rise in price - at a slower rate than for a regular bond. b. D Thus, there is no reinvestment risk, since semi-annual interest payments are not received. 14%C. Added 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. All of the following statements are true about Treasury Receipts EXCEPT: A. the full faith and credit of the U.S. Government backs the securities underlying the issueB. I and IVC. They are sold at auction by the Treasury on an "as needed" basis to meet unexpected cash shortfalls, so they are not part of the regular auction cycle. However, 30 year T-Receipts will trade until they all mature. Which of the following are zero coupon original issue discount obligations?I Treasury BillsII Treasury NotesIII Treasury BondsIV Treasury STRIPS A. I and IV onlyB. Only covers the peril of hail Once the Federal government started "stripping" bonds itself (in 1986) and selling them to investors, this market evaporated. \text {Inventory} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 195,000\\ c. Referent power is more formal than the other kinds of power and is based on the position and formal . a. Transcribed Image Text: All of the following statements regarding equality (as a political value) are correct EXCEPT Political equality emphasizes political rights, such as voting The promotion of equality may create limitations on individual freedom Economic equality may be pursued through redistributive programs Equality means the same thing to What coverage is not included on the Boatowners Policy? do public opinions polls show this party's platform was the one supported by the voters at the time it was written? semi annuallyC. e. Democrats are more likely than Republicans to believe that government should let each person get ahead on his or her own rather than guaranteeing jobs and standards of living. Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). Under a Mobile Homeowners Policy, if the mobile home is insured under Coverage A for $70,000, how much coverage would ordinarily apply to personal property under Coverage C? I and IVC. A deductible only applies to loss of contents--A separate deductible applies to contents and building losses. D Price volatility of a CMO issue would most closely parallel that of an equivalent maturity: A. Thus, the certificate was priced as a 12 year maturity. II and IV. makes it easier for voters to hold parties accountable for their actions, The argument for the responsible party model is that democracy is strengthened when, voters are given clear alternatives and hold parties responsible for their promises. Search for an answer or ask Weegy. A customer who wishes to sell 1 Treasury Bill will receive:A.a dollar price quoted to a 4.90 basisB.a dollar price quoted to a 5.00 basisC.$4,900D.$5,000. B 4 weeksB. This means that the opportunity cost of external equity capital is about 15 percentage points higher than that of retained earnings." Because of this, federal agency bonds trade at higher yields than equivalent maturity U.S. Government issues (typically at yields that are 25 to 50 basis points higher than equivalent maturity Treasuries). guarantee of the financial institution from which the mortgages were purchased, D. the setting of a fixed interest rate for the pool of mortgages backing the security. Office of the Comptroller of Currency. I, II, IIID. All CMO tranches have the same credit rating - AAA (Moody's) or AA (Standard and Poor's). The bonds have no stated maturity - the holder can redeem at any time, however interest is only credited to the bonds for 30 years.Savings bonds do not trade - they are issued by the Treasury and are redeemed with the Treasury (a bank can act as agent for the Treasury issuing and redeeming Series EE bonds).No physical certificates are issued - the bonds are issued in electronic form. A Yacht Policy Which of the following is NOT a reason the United States has a two-party system? This answer has been confirmed as correct and helpful. e. Third parties occasionally have had a dramatic impact on presidential election outcomes. C . b. c. The notes contain disclosures related to required supplementary information. the Federal Reserve may have to loosen credit. User: Alcohol in excess of ___ proof Weegy: Buck is losing his civilized characteristics. The interest rate placed on a TIPS (Treasury Inflation Protection Security) is less than the rate on an equivalent maturity Treasury Bond. Ob Od It is wrong for the government to tax gasoline Lowering the taxes on gasoline would decrease the price at the pump The taxes on gasoline should be lower The government is trying to mislead . evolution. Treasury Receipts pay interest: A. quarterlyB. If Treasury bill yields are dropping at auction, then interest rates are falling and debt prices must be rising. 2 basis pointsB. The party activity of governing involves _______ and _______, Controlling government; enacting the party's policy agenda, Since party activists tend to be more extreme in their ideologies, they pull party policy agendas, According to the textbook, the relationship between citizens and parties today is best reflected by, citizens' growing dissatisfaction with parties because moderates find themselves poorly represented and frustrated at the emergence of hyperpartianism. I and IVC. The party that usually gets the most votes is the party that, The rank-and-file members who carry out the party's electioneering efforts are the, The major source of money for party fundraisers comes from, individual donors and political action committees, The statement that third parties are irrelevant in modern-day politics is, less accurate than in the past due to the Tea Party victories of the 2010 midterm elections, Primary voters, party activist, and big money donors, tend to be more ideological and issue oriented than the voters in the general election, According to James Madison, political parties were. Ginnie Mae Pass through certificates are termed "modified" because they are backed by the U.S. Government as well as the agency. The logic behind this tax treatment is that the mortgage interest paid by the homeowners was fully deductible from both federal, state, and local taxes. Party activists are important to the parties for all of the following reasons EXCEPT Therefore, very little marketability risk exists. Collateralized mortgage obligations may be backed by all of the following securities EXCEPT: A. O sole proprietorships must obey employee and consumer regulations. User: She worked really hard on the project. Can this binomial distribution be approximated with a normal distribution? The best answer is C. CDOs - Collateralized Debt Obligations - are structured products that invest in CMO tranches (and they can also invest in other debt obligations that provide cash flows). $87.50D. It acts like a long-term zero coupon bond. 01(ex+1)3exdx\int_0^1\left(e^x+1\right)^3 e^x\ d x Is rated on acreage basis Treasury bondB. What information is reported in a companys balance sheet? 1.All of the following statements about life in West Africa around the 1600s are true EXCEPT: Most West Africans lived in large urban societies Although there were large trading centers along the riversthe Senegal, Gambia, Niger, Volta, and Congomost West Africans lived in small villages and identified primarily with their extended family . The PAC tranche is a "Planned Amortization Class." All of the following statements about dual federalism are TRUE except: a. Which of the following statements are TRUE about CMOs?I CMO issues have a serial structureII CMO issues are rated AAAIII CMO issues are more accessible to individual investors than regular pass-through certificatesIV CMO issues have a lower level of market risk than regular pass-through certificates A. I and II onlyB. A PAC offers protection against both prepayment risk (prepayments go to the Companion class first) and extension risk (later than expected payments are applied to the PAC before payments are made to the Companion class). quarterlyC. Treasury STRIP. market interest rates are fallingC. When interest rates rise, the interest rate on the tranche rises. Call and put options are the most basic derivative - option values are derived from the price movements of the underlying stock, in addition to time premiums on the contracts. Federal ReserveC. Conversely, if the principal amount of a Treasury Inflation Protection Security is adjusted downwards due to deflation, the adjustment is tax deductible in that year against ordinary interest income. What will be the compound interest on an amount of rupees 5000 for a period of 2 years at 8% per annum? An annual upward adjustment due to inflation is taxable in that year; an annual downward adjustment due to deflation is tax deductible in that year.C. interest payments are subject to state and local taxC. II and IIIC. Treasury NoteD. "5M" means that the customer is buying $5,000 par value of the notes (M is Latin for $1,000). Mortgage backed pass-through certificateC. 1050. the guarantee of the U.S. GovernmentC. Freddie Mac pass through certificates are not guaranteed by the U.S. Government (unlike GNMA pass through certificates). If interest rates rise, then the average maturity will lengthen, due to a lower prepayment rate than expected. Surrounding this tranche are 1 or 2 Companion tranches. Obligations issued at par make periodic interest payments. ANSWER: 24. U.S. Treasury securities are generally considered to be immune to all of the following risks EXCEPT: A. default riskB. As payments are received from the underlying mortgages, interest is paid pro-rata to all tranches; but principal repayments are paid sequentially to the first, then second, then third tranche, etc. compromise federalism. C Added 3 hours 44 minutes ago|3/1/2023 11:29:26 PM, Updated 3 hours 12 minutes ago|3/2/2023 12:01:36 AM. ), and Freddie Mac (Federal Home Loan Mortgage Corp.) all issue pass-throughs. Treasury Notes are government obligations maturing between 1 year and 10 years which pay interest semi-annually. Interest rate riskB. Thus, the certificate was priced as a 12 year maturity. The correct answer can be decided from the lines,' It will be the company's second space-tourism launch since its founder Jeff Bezos traveled into space in July 2021. C In order to qualify for a federal loan, the property owner must purchase Flood Insurance if located in a flood area These are:Federal National Mortgage Association ("Fannie Mae")Government National Mortgage Association ("Ginnie Mae")Federal Home Loan Mortgage Corporation ("Freddie Mac"), Interest received from which of the following securities is exempt from state and local tax?I Treasury BondsII Federal Farm Credit Funding Corporation BondsIII GNMA BondsIV FHLMC Bonds A. I onlyB. Personal Property coverage Lateef. 3. Alabama These are issued at a deep discount to face.Its price moves just like a conventional long term deep discount bond. This is true because when the certificate was purchased, assume that the average life of the underlying 15 year pool (for example) was 12 years. A(n) __________ is a federal program that states are required to implement, but given no additional funds for. Umbrella policies provide coverage on which basis? Only mortgage backed pass-through certificates are used as the backing for CMOs - and Ginnie Mae (Government National Mortgage Assn. Annual interest on the bonds is 3.5% of $5,000 face amount equals $175.00.

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