Which of the following statements is/are false regarding the issuanceof GNMA securities in 2016?O Thrifts pooled and securitized mortgages and issued some GNMA securities.O Commercial banks pooled and securitized mortgages and issued someGNMA securiies.O Mortgage companies pooled and securitized mortgages and issued someGNMA securities.GNMA pooled and securitized mortgages and issued all the GNMAsecurities.

Government National Mortgage Association is a corporation that ensures the payment of…

Answered: Which of the following statements…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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All equity securities and investments in debt securities that are intended to be sold in the near term are classified as held-to-maturity securities. trading securities. available-for-sale securities. none of these choices. 2. Any change in the fair value of trading securities is reported on the income statement as part of net income. reported as part of other comprehensive income in the shareholders' equity section of the balance sheet. ignored; only the amortized cost is reflected in the financial statements. reported as a cash outflow in the investing activities section of the statement of cash flows. 3. A minority active investment with significant influence occurs when the investor owns between 10% and 20% of the voting common stock of the investee. over 50% of the voting common stock of the investee. between 20% and 50% of the voting common stock of the investee. over 50% of the preferred stock of the investee.
Which of the following is a disadvantage to a corporation issuing bonds? Group of answer choices A)The required interest payment must be met each period. B)The liquid nature of the bonds makes them attractive to investors who may not want to hold them to maturity. c)The large principal payment due at maturity. d)Both the first and third answers above are both disadvantages. e)The first, second and third answers above are all disadvantages.
Which of the following statements is false? A. Asset-backed securities (ABS) may be backed by financial assets other than mortgages. B. Residential mortgage-backed securities (RMBS) are backed by mortgages on income producing real estate properties. C. The securitization of financial assets increases the liquidity of the underlying financial assets. D. In a sequential-pay collateralized mortgage obligations (CMOs), all scheduled principal payments and prepayments are paid to each tranche in sequence until that tranche is paid off.
46. Help me selecting the right answer. Thank you
Which of the following security instruments, if any, does not allow the debtor the right of redemption upon default? a. Mortgage foreclosure by "action and sale" b. "Strict foreclosure" of mortgage c. Debtors have a right to redeem property under all of these security instruments. d. Deed of trust e. Mortgage foreclosure by "power of sale"
In the run-up to the 2007 – 2009 financial crises, all of these key trends undermined the health of the mortgage (and other) securitization markets except: Group of answer choices D. Banks failing to distribute securitized risk A. Risk-based pricing C. Subprime credit wrapped into complex and overvalued securities B. Subprime loans
How are the bonds issued, what is the appropriate journal entry? Provide example for issuing bonds. How do we determine the present value of a bond when market rate differs from its contract rate? How do we record the interest payment (provide examples for both premium and discount amortization), using the effective interest method? What is the difference between the effective interest method and the straight line method when amortizing either a discount or a premium? Cite and give credit to the author that you are citing.
Are the over-collateralizationa requirements for mortgage pay-through bonds the same as for mortgage-backed bonds?
15 A certificate of deposit (CD) is issued when Lo-Risk Invest LLC deposits funds with Money Bank on the bank’s promise to repay the funds, with interest, on a certain date. Lo-Risk cannot withdraw the funds before the date of maturity because a. a CD is not a three-party instrument. b. the bank is both the issuer of the instrument and the drawee. c. a CD cannot be sold or negotiated to a third party before maturity. d. a CD is a time deposit. 1)Donut Shop(16 signs a promissory note for $50,000 in favor of Enterprise Lending Inc. The note includes an acceleration clause. This note is a. nonnegotiable, because the maker can move up the payment date. b. negotiable. c. nonnegotiable, because payment can be demanded early if a specified event occurs. d. nonnegotiable, because the maturity may be extended into the future. 2). Bon signs a promissory note for $12,500 (18)in favor of Car Loans Inc. The note specifies payment by a certain date and includes an option to pay early. This note…

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