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MBSs and Other Securitized Pools Are Referred as Pass-Throughs Because

Question 1

Multiple Choice

MBSs and other securitized pools are referred as pass-throughs because


A) Cash flows from assets in the pool pass through to investors
B) Ownership of the assets passes through from the originator to the investor
C) Underlying loans can be prepaid at the discretion of the borrower
D) The underlying assets in the pool are amortized

Correct Answer:

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