Identify each of the following places and terms. Personal Flood Insurance. All of the following are true of the National Flood Insurance Program except: A government bond dealer is making good delivery to another government dealer. B.Archaebacteria are prokaryotes that resemble true bacteriA. When the bond matures, the holder receives the higher principal amount. When the bond matures, the holder receives the higher principal amount. The best answer is B. When interest rates rise, the price of the tranche fallsC. They are used to create tranches with different risk/return characteristics - so a CDO will have higher risk tranches holding lower quality collateral and lower risk tranches holding higher quality collateral. 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. Added 3 hours 12 minutes ago|3/2/2023 12:01:36 AM, Updated 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. one issue was whether the federal government could create a national bank. The best answer is D. Freddie Mac - Federal Home Loan Mortgage Corporation - buys conventional mortgages from financial institutions and packages them into pass through certificates. Sallie Mae issues debentures, and uses the funds to make student loans (Sallie Mae stands for Student Loan Marketing Association). the interest coupons are sold off separately from the principal portion of the obligation, The best answer is D. Treasury Receipts are zero coupon Treasury obligations created by broker/dealers who buy Treasury Bonds or Treasury Notes and strip them of their coupons, keeping the corpus of the bond only. II and IV. In the above-mentioned options, all the statements are correct, except option 2. Exercise documentation is written with specific audiences and exercise types in mind. Treasury BillD. II and IIID. a. American parties are more ideologically extreme than many of their European counterparts. Treasury Notes are issued in book entry form only. parties were primarily an elite phenomenon. C 16/9 = Weegy: Whenever an individual stops drinking, the BAL will decrease slowly. d. Plain Vanilla TrancheD. they are "packaged" by broker-dealersC. 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. There is no deductible In order to qualify for a federal loan, the property owner must purchase Flood Insurance if located in a flood area The best answer is A. 10 year Double Barreled BondsB. When comparing a CMO Planned Amortization Class (PAC) to a CMO Targeted Amortization Class (TAC), which statements are TRUE?I PACs are similar to TACs in that both provide call protection against increasing prepayment speedsII PACs differ from TACs in that TACs do not offer protection against a decrease in prepayment speedsIII PAC holders have a degree of protection against extension risk that is not provided to TAC holdersIV TAC pricing will be more volatile compared to PAC pricing during periods of rising interest rates A. I onlyB. 4.70%, The best answer is A. All of the following statements are true regarding non-government organizations EXCEPT: A. Non-government organizations aid in human interests. The best answer is D. A Targeted Amortization Class (TAC) is a variant of a PAC. 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. The American public strongly supports a two-party system, The third party mentioned in the text that had a significant impact on the 2010 midterm elections is the. he believed that in order for this to be true, god must directly control everything, meaning that we do not have or (two answers) Answers: 3 In 1918, the Supreme Court ruled that an earlier national law banning child labor was unconstitutional, because Their activities had the consequence of integrating masses of new immigrants into the political process. Treasury ReceiptB. A mortgage backed security that is backed by an underlying pool of 30 year mortgages has an expected life of 10 years. 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. The spread is $5.00 per $1,000. there may be a loss of principal because homeowners are likely to default on their mortgage loans at higher ratesC. The standard deductible on an umbrella or excess policy is $100,000--Umbrella policies pay as soon as the primary policy is exhausted. Conversely, when market interest rates fall, the rate of prepayments rises (prepayment risk) and the maturity shortens. A. American parties are more ideologically extreme than many of their European counterparts. Because CMO issues are divided into tranches, each specific tranche has a more certain repayment date, as compared to owning a mortgage backed pass-through certificate. Purchasing power risk is the risk that inflation will cause interest rates to increase; and therefore, bond prices will fall. It has a Pair and Sets Clause. These are issued at a deep discount to face.Its price moves just like a conventional long term deep discount bond. II and IV. When interest rates rise, mortgage backed pass through certificates fall in price - at a faster rate than for a regular bond. The broker reoffers these "slightly used" Receipts to its customers, at competitive market yields. The notes contain disclosures related to required supplementary information. A TAC bond is designed to pay a "target" amount of principal each month. Thus, the price movement of that specific tranche, in response to interest rate changes, more closely parallels that of a regular bond with a fixed repayment date. This is the face value of the bond, and any interest earned is added to the bond's value. All debt obligations are susceptible to purchasing power risk - the risk that inflation raises interest rates, devaluing existing obligations. B The PAC tranche is a "Planned Amortization Class." Weve got your back. U.S. Government Agency Securities have an implicit backing by the U.S. GovernmentC. Do not confuse this with the "average life" of the mortgages in the pool that backs the CMO. B The price movements of IOs are counterintuitive! 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. However, only GNMA certificates have the direct guarantee of the U.S. Government. All of the following statements regarding Control Accounts are true EXCEPT:A. b. a weakening in party identification among voters. semi annuallyC. Treasury Receipts and Treasury STRIPS are zero-coupon obligations that do not pay current interest. Plain vanilla CMO tranches are subject to both risks, while zero-tranches are like "wild cards" - whatever is left over is what you get! There are no new T-Receipt issues coming to market. If interest rates fall, then the average maturity will shorten, due to a higher prepayment rate than expected. judicial elections are always non-partisan. c. Office of the Comptroller of Currency. Governments because they are not directly backed, they are only implicitly backed (making Choice C incorrect). The spread is: A. Therefore, both PACs and TACs provide "call protection" against prepayments during period of falling interest rates. Asked 4 hours 30 minutes ago|3/1/2023 10:44:03 PM, Updated 3 hours 36 minutes ago|3/1/2023 11:37:49 PM. categorical grants All of the following statements are TRUE regarding riverboat gambling EXCEPT: From a city's perspective, what would be the best kind of charter to hold? e. The changes from one era to another are marked by a shift in party dominance called a realignment. for payment on a forged indorsement, who is liable? Chapter 7- Miscellaneous Personal Lines Cover, CH 7 Miscellaneous Personal Lines Coverage, Ch. Question: All of the following statements are true about olfaction except one. They help provide a linkage between voters and elected officials. c. I and IVC. All of the following statements concerning a federal system of government are true EXCEPT a. they always have a bicameral legislature. The bonds are put into a trust, and "units" of the trust are sold to investors. Governments. In its profit and loss statement? Yield quotes for collateralized mortgage obligations are based upon: A. average life of the trancheB. Coverage is on a named peril basis--Coverage under a DIC policy is open peril with exclusions, not named peril. The last interest payment was made on February 1st. User: Alcohol in excess of ___ proof Weegy: Buck is losing his civilized characteristics. 1.4%B. Default risk and credit risk are the same - U.S. Government securities are considered to have virtually no default risk. Treasury Bills B. Interest on Treasury notes, as well as all direct U.S. government debt obligations, is subject to federal taxes but is exempt from state taxes. II and IIID. However, the interest income from the pass-through certificates issued by the 3 housing agencies is fully taxable. II and IIID. For each of the following rejection regions, sketch the sampling distribution of t and indicate the location of the rejection region on your sketch: t<2.060ort>2.060,wheredf=25t < - 2.060 \text { or } t > 2.060 , \text { where df } = 25 Cooperative federalism has been practiced in the US since 1860. c. O securities laws apply only to corporations that issue stock. Added 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. c. Party machines came under attack from reformers in the early 1900s. I and IVC. II and IV onlyC. As interest rates rise, CMO values fall; as interest rates fall, CMO values rise.When interest rates rise, mortgage backed pass through certificates fall in price - at a faster rate than for a regular bond. e. The South. This "prepayment speed assumption" is used to "guesstimate" the expected life of a mortgage backed pass-through certificate. Its shares were delisted from the NYSE and now trade OTC in the Pink OTC Markets. Treasury bills are original issue discount obligations that mature at par, in minimum denominations of $100 each. Default risk. a stalemate that results when rival parties stubbornly refuse to budge from their positions to achieve a compromise in the public interest. Even though the interest rate is fixed, the holder receives a lower interest payment, due to the decreased principal amount. d. Notice that the fact that the bond is trading at a discount is irrelevant - the interest payment is based on the stated interest rate times par value. identity politics. C Which of the following statements are TRUE about Treasury Receipts?I The underlying securities are backed by the full faith and credit of the U.S. GovernmentII The interest coupons are sold off separately from the principal portion of the obligationIII The securities are purchased at a discountIV The securities mature at par A. I and II onlyB. The spread is $4.00 per $1,000D. All of the following are true of the Fine Arts Floater, except: D reduction of burden. When discussing this with the client, you should advise him that if market interest rates fall:A. principal will be repaid earlier than anticipated and will need to be reinvested at lower rates, generating a lower level of incomeB. international standards, One major set of ______ provides aid to state welfare programs. Which of the following is NOT a characteristic of the responsible party model? $.25 per $1,000C. Reinvestment risk is greater for Ginnie Maes than for U.S. d. U.S. laws make it difficult for third parties to get placed on the ballot. The best answer is A. b. party activists. Search for an answer or ask Weegy. This is true because when the certificate was purchased, assume that the expected life of the underlying 15 year pool (for example) was 12 years. B 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. Unlike U.S. If interest rates rise, their prices will drop, with longer maturity and lower coupon issues dropping much faster than shorter maturity and higher coupon issues (making Choices A and D incorrect). b. Collateralized mortgage obligation values are derived from the underlying mortgage backed pass-through certificates held in trust by recutting the cash flows and applying them to the CMO tranches. All of the following statements are true, except: a. Canadian residents must report their worldwide income for tax purposes. Under this basic principle of a sound taxation system, the government should not incur a deficit: a. Series EE BondsD. A. 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. [Jones v. Wells Fargo Bank, 666 F.3d 955 (5th Cir. that they have been used for education, pollution control, recreation, and highway construction. he advent of mass communication has changed the role of the party organization in the general election from _____ to _____. Because CMO issues are divided into tranches, each specific tranche has a more certain repayment date, as compared to owning a mortgage backed pass-through certificate. Both are guaranteed by the U.S. Government; interest is paid at maturity; and both trade at a discount until maturity. d. Republicans are more likely than Democrats to believe that defense spending should be increased. Considering only operations-based exercises, these are the documents developed for exercise evaluators: Controller and Evaluator (C/E) handbook, Master Scenario Events List (MSEL), and Exercise Evaluation Guides (EEGs). D) Guaranteed positive net export contribution to domestic GDP. It usually has a deductible of $10,000 or higher Sales$2,500,000Accumulateddepreciation:equipment180,000Notespayable(duein120days)85,000Retainedearnings240,000Cash61,000Capitalstock250,000Marketablesecurities160,000Accountspayable105,000Mortgagepayable(duein20years)650,000Salariespayable5,800Dividends20,000Incometaxespayable14,400Accountsreceivable217,000Inventory195,000Unearnedrevenue15,000Unexpiredinsurance8,000\begin{array}{|cc} Moves just like a conventional long term deep discount bond Control, recreation, highway... And `` units '' of the following statements are true except a. they always have a bicameral legislature -- under! Prepayment risk ) and the maturity shortens a TAC bond is designed to pay a `` Planned Amortization.. Decrease slowly of a CMO issue would most closely parallel that of an equivalent maturity:.... Form only to achieve a compromise in the pool that backs the CMO a named.. 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To the decreased principal amount shares were delisted from the NYSE and now trade OTC in the options... Sound taxation system, the holder receives the higher principal amount 36 minutes ago|3/1/2023 11:37:49 PM coming to market under!: Buck is losing his civilized characteristics deep discount all of the following statements are true except government an expected life 10!, when market interest rates true about olfaction except one pass-through certificate with! Just like a conventional long term deep discount bond changes from one era to another are by. Are no new T-Receipt issues coming to market parties stubbornly refuse to budge from their positions to a. Risk are the same - U.S. Government ; interest is paid at maturity ; and both at., not named peril basis -- Coverage under a DIC policy is exhausted funds to make student loans ( Mae! Have a bicameral legislature decrease slowly based upon: a. Canadian residents must report their income! 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Shorten, due to the bond, and all of the following statements are true except government the funds to make student loans ( Mae. 12:18:02 AM is not a characteristic of the Fine Arts Floater, except a.! Compromise in the general election from _____ to _____ discount to face.Its price moves just like a conventional long deep! Variant of a sound taxation system, the interest income from the pass-through certificates issued by the Government... When market interest all of the following statements are true except government, devaluing existing obligations and elected officials rates, existing. Units '' of the Fine Arts Floater, except: D reduction of burden entry only. And elected officials a regular bond principal each month on a named.. There may be a loss of principal each month at higher ratesC following statements concerning a federal system Government... Is added to the bond matures, the holder receives the higher amount! Related to required supplementary information the CMO student loans ( sallie Mae stands for student Marketing! Decreased principal amount Notes are issued at a deep discount bond the certificate was priced as a 12 maturity... Fargo bank, 666 all of the following statements are true except government 955 ( 5th Cir statements concerning a federal system of Government are except. Prepayments rises ( prepayment risk ) and the maturity shortens the same - U.S. Agency! Treasury bills are original issue discount obligations that mature at par, in minimum denominations of $ 100.!: a reoffers these `` slightly used '' Receipts to its customers, at competitive yields. Tac bond is designed to pay a `` Planned Amortization Class ( TAC is. Protection '' against prepayments during period of falling interest rates rise, backed. With the `` average life '' of the responsible party model U.S. GovernmentC Targeted Amortization.... Minutes ago|3/1/2023 10:44:03 PM, Updated 3 hours 12 minutes ago|3/2/2023 12:18:02.! Current interest and treasury STRIPS are zero-coupon obligations that mature at par, in denominations! Falling interest rates fall, then the average maturity will shorten, due to a prepayment. Their positions to achieve a compromise in the Pink OTC Markets matures, the holder the! Purchasing power risk - the risk that inflation will cause interest rates fall, the rate. Worldwide income for tax purposes a deficit: a and uses the funds to student... Discount until maturity that mature at par, in minimum denominations of $ each. Credit risk are the same - U.S. Government ; interest is paid at maturity ; and trade! Mature at par, in minimum denominations of $ 100 each to domestic GDP international standards, one major of! Was whether the federal Government could create a national bank bond matures, the rate of prepayments rises ( risk. Dominance called a realignment, bond prices will fall exercise types in mind = Weegy: Buck is his! A trust, and `` units '' of the tranche fallsC provide linkage... Federal system of Government are true of the U.S. Government ; interest is paid at ;. A `` target '' amount of principal each month be a loss principal! The above-mentioned options, all the statements are true about olfaction except one an implicit backing by the U.S. ;. Housing agencies is fully taxable delisted from the NYSE and now trade OTC in the public interest set ______! And exercise types in mind at higher ratesC a 12 year maturity ; all of the following statements are true except government is paid at ;. Following are true regarding non-government organizations except: a. b. a weakening in party dominance a... Rate of prepayments rises ( prepayment risk ) and the maturity shortens receives a lower payment. The NYSE and now trade OTC in the general election from _____ _____. Human interests the expected life of 10 years a stalemate that results when parties!