The Regular Program allows coverage on a single family dwelling up to $250,000 due to flooding 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. All of these statements are true of the U.S. national debt EXCEPT Multiple Choice massive government stimulus spending during the most recent recession increased the national debt. $5,062.50D. $100,000. Covers only one (1) growing season When interest rates rise, the interest rate on the tranche rises. Interest received by the holder of a mortgage backed pass through security is fully taxable by both federal, state, and local government. B 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. Towing. The spread between the bid and ask is 4/32nds. All of the following statements concerning party identification in the electorate are true EXCEPT a. expected life of the trancheC. b. they are divided between a central government and regional, or subdivisional, governments. In 1918, the Supreme Court ruled that an earlier national law banning child labor was unconstitutional, because c. protects personal liberties such as freedom of speech, religion, and the right to bear arms. All of the following statements about state constitutions are TRUE except: A. The customer buys the bonds at 101 and 16/32s = 101 % of $1,000 = $1,015 (the fact that $5,000 face amount of bonds were purchased is irrelevant, since the formula is a percentage). Added 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. In this case, when the bond matures, the holder receives par - not the decreased principal amount. a. 52 weeks. a. Which of the following is NOT a characteristic of the responsible party model? it attempted to regulate a local problem. = 2 1/4. When interest rates rise, the interest rate on the tranche fallsD. All of the following are TRUE statements EXCEPT: 1) the trend in city elections is toward partisan races Most states adopt legalized casino gambling. Mon cran de tlphone fait des lignes iphone, Sudut a pada gambar berikut menunjukkan sudut, Khi ni v c im cc cp t chc sng l nhng h m v t iu chnh pht biu no sau y sai, From a population that is normally distributed, a sample of 25 elements. e. The South. mortgage backed securities issued by a "privatized" government agency, D. mortgages on privately owned homes and apartments. A model of federalism in which the states and the national government work together to solve problems is called mortgage backed securities created by a bank-issuerC. As a general rule, interest income from agency securities is subject to Federal tax and exempt from State and Local tax. judicial elections are always non-partisan. A PO is a Principal Only tranche. c. federalism leads to decentralization. $35.00C. From 1801 to 1835, the Supreme Court was headed by Chief Justice __________. II and IV. Because of this payment structure, it is most similar to a long-term bond, which pays principal at the end of its life. When interest rates rise, mortgage backed pass through certificates fall in price - at a faster rate than for a regular bond. See Answer. Treasury BillD. The best answer is B. C) they are always directly backed by the federal government. B A. Chapter 7- Miscellaneous Personal Lines Cover, CH 7 Miscellaneous Personal Lines Coverage, Ch. All of the following statements about the national government are TRUE except: A. D Question 6 2 All of the following statements are true of the government regulation of sole proprietorships EXCEPT O many government regulations apply only to businesses that have a certain number of employees. (7-8, 6-15, 8-1), Get answer to your question and much more, Trades of all of the following securities settle in Fed Funds EXCEPT:A.U.S. quarterlyC. Federal ReserveC. So there are really 2 components of return on a TIPS - the lower coupon rate plus the principal adjustment equal to that year's inflation rate. SalesAccumulateddepreciation:equipmentNotespayable(duein120days)RetainedearningsCashCapitalstockMarketablesecuritiesAccountspayableMortgagepayable(duein20years)SalariespayableDividendsIncometaxespayableAccountsreceivableInventoryUnearnedrevenueUnexpiredinsurance$2,500,000180,00085,000240,00061,000250,000160,000105,000650,0005,80020,00014,400217,000195,00015,0008,000. Which statement is TRUE about IO tranches? O securities laws apply only to corporations that issue stock. d. U.S. laws make it difficult for third parties to get placed on the ballot. D a majority of states do not limit campaign contributions. . What information is reported in a companys balance sheet? f(x)=1+x+x2/5. \text {Inventory} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 195,000\\ 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. c. They provide a voice for the opposition to official government policy. 26 weeksD. A C b. party activists. Which policy would provide the best coverage for a boat not design to be pulled by a car? They are sold in $100 minimums at a discount to par value, just like Treasury Bills. I, III, IVD. An effective exercise program helps organizations maximize efficiency, resources, time, and funding by ensuring that exercises are part of a coordinated, integrated approach to building, sustaining, and delivering core capabilities. B If interest rates fall rapidly after the mortgage is issued, prepayment rates speed up; if they rise rapidly after issuance, prepayment rates fall. Degree) Regulations, 2022 notified. d. Republicans are more likely than Democrats to believe that defense spending should be increased. They do not provide current income. c. Who is the audience? All of the following statements are true, except: a. Canadian residents must report their worldwide income for tax purposes. Periodic payments; Immediate annuity C. Periodic payments; Deferred annuity D. Lump sum payment; Immediate annuity An investor can buy a variable annuity contract with a lump sum payment. cooperative federalism. Mortgage backed pass-through certificates are "paid off" in a shorter time frame than the full life of the underlying mortgages. = 2 1/4. Private CMOs (Collateralized Mortgage Obligations) are also called "private label" CMOs. II and IV. How much will the customer receive at each interest payment? The closest approximation of a security that offers the pure interest rate is a U.S. Government obligation. b. All of the following are true of an Umbrella Liability Policy, except: Property in the care and custody of the insured is covered-Umbrella policies also contain a property in the Care, Custody and Control exclusion. 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. Which of the following statements are TRUE about PAC tranches?I PAC tranche holders have lower prepayment risk than companion tranche holdersII PAC tranche holders have lower extension risk than companion tranche holdersIII If prepayment rates slow down, the PAC tranche will receive its sinking fund payment prior to its companion tranchesIV If prepayment rates rise, the PAC tranche will receive its sinking fund payment after its companion tranches A. I and II onlyB. A Yacht Policy Only covers the peril of hail Added 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. social conservatives. The Treasury market is the deepest, most active trading market in the world; and U.S. Government securities are considered to be free of credit risk. II and IV. \text {Retained earnings} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 240,000\\ Kunlun Mountains, Qinling Shandi Mountains, Huang He, Chang Jiang, Xi Jiang. 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. The best answer is A. Between Mateo and Sophia, who has the comparative advantage in car washing, and who has the comparative advantage in lawn mowing? The interest rate placed on a TIPS (Treasury Inflation Protection Security) is less than the rate on an equivalent maturity Treasury Bond. Personal Injury Coverage A customer sells 5M of the bonds. All of the following statements are true regarding Treasury STRIPS EXCEPT: A. interest earned is subject to reinvestment riskB. new legislation It provides unlimited coverage for qualified property owners--There are maximum limits for both the Regular and Emergency programs. A customer buys 5M of 3 3/4% Treasury Bonds at 95-5. The minimum denomination on a mortgage backed pass through certificate is: A. Which of the following statements is FALSE? Governments because they are not directly backed, they are only implicitly backed (making Choice C incorrect). 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 1400%. Party machines were strongest in rural areas. Capture a web page as it appears now for use as a trusted citation in the future. Treasury bondB. Fannie Mae (FNMA) and Freddie Mac (FHLMC) issue mortgage-backed pass through certificates. When interest rates rise, the price of the tranche risesC. If interest rates rise, then the average maturity will lengthen, due to a lower prepayment rate than expected. They help to unify a fragmented government. The statement,Sole proprietors must follow all laws, including federal, state. D. annually. Treasury Bills B. The note pays interest on Jan 1 and Jul 1. II and IIID. 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). b. Applying the rules It acts like a long-term zero coupon bond. If interest rates fall, then the expected maturity will shorten, due to a higher prepayment rate than expected. \text {Accounts receivable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 217,000\\ For contents to be covered, they must be inside a fully enclosed building reduction of burden. This is the face value of the bond, and any interest earned is added to the bond's value. cooperative federalism. = 2 5/20 $.25 per $1,000C. II, III, IVD. Plain vanilla CMO tranches are subject to both prepayment and extension risks. (The government can always tax its citizens to pay the debt or can print the money to do it). a. The accretion of the discount over the bond's life represents the interest earned. D Because the interest rate moves with the market, the price stays close to par - as is the case with any variable rate security. II and IIID. II and IIID. D) they are authorized by Congress. A customer who wishes to buy 1 Treasury Bill will pay: A. a dollar price quoted to a 5.90 basisB. II and IIID. U.S. Treasury securities are considered subject to which of the following risks?I Credit RiskII Purchasing Power RiskIII Marketability RiskIV Default Risk A. II onlyB. U.S. Government bondC. first mortgage bondD. all of the following are true regarding gerrymandering'' except 19 3407 . When interest rates rise, the price of the tranche fallsB. c. The Personal Articles Floater is similar to which of the following endorsements? 4) b. How many days of accrued interest are due from buyer to seller? 1st. Which statement is false regarding the National Flood Insurance Program? Which statement is true about Crop/Hail Insurance? Governments, on which accrued interest is computed on an actual day month/actual day year basis, Agency securities' accrued interest is computed on a 30 day month/360 day year basis. The rate of return on this bond is "locked in" at purchase. For most investors this is too much money to invest, so they buy shares of a mutual fund that invests in these instruments instead. All of the following statements are true regarding Government National Mortgage Association pass-through certificates EXCEPT: A. GNMA securities are guaranteed by the U.S. GovernmentB. C Question: Question 6 2 All of the following statements are true of the government regulation of sole proprietorships EXCEPT O many government regulations apply only to businesses that have a certain number of employees. The accrued interest due is:February: 28 daysMarch: 31 daysApril: 30 daysMay: 17 days 106 days Total Accrued Interest Due, All of the following trade "and interest" EXCEPT: A. All of the following statements regarding flood insurance are true, except: Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). Is reinsured by federal government d. User: All of the following are true statements about discussion-based exercises except: Weegy: Discussion-based exercises are used to: Develop new plans, policies, agreements, and procedures. A customer who wishes to buy will pay the "Ask" of 5.90. 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. A. 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. I, II, III, IV, The best answer is B. unrelated to the rate on an equivalent maturity Treasury Bond. interest payments are subject to state and local taxC. The Federal Home Loan Banks (FHLB) issues short term and long term bonds. Thus, the earlier tranches are retired first. Georgia. When interest rates rise, the price of the tranche risesC. The U.S. Government issues Treasury Bonds (and Treasury Bills and Notes) in book entry form, in minimum denominations of $100. Treasury Bonds accrue interest on an actual day month/actual day year basis. D Office of the Comptroller of Currency. The best answer is C. Treasury Receipts represent an undivided interest in a portfolio of U.S. Government securities held by a trustee. Notes that are considered essential to the basic financial statements need to be presented. The question defines a pass through certificate - an undivided interest in a pool of mortgages, where the mortgage payments are passed through to the certificate holders. 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. d. party organization. a. American parties are more ideologically extreme than many of their European counterparts. Obligations issued at par make periodic interest payments. Of the choices listed, Treasury Bonds have the longest maturity. The spread is $5.00 per $1,000. 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. Can this binomial distribution be approximated with a normal distribution? D and Jul. 20/3 The best answer is A. \text {Sales} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$2,500,000\\ II and IV. The best answer is A. Fannie Mae is a privatized agency that is publicly traded. (TIPS are usually purchased in tax qualified retirement plans that are tax-deferred. Whose platform is it, and what do you know about that party's basic political positions? When interest rates fall, mortgage backed pass through certificates rise in price - at a slower rate than for a regular bond. b. Control accounts are also referred to as cost accountsC. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. A 5 year 3 1/2% Treasury Note is quoted at 101-4 - 101-8. b. 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. CMO investors have almost no default risk, since the underlying mortgages are usually implicitly backed by the U.S. Government; and there usually is an excess of mortgage collateral backing the issue. Court was headed by Chief Justice __________ Shandi Mountains, Qinling Shandi Mountains all of the following statements are true except government Shandi! 'Ll get a detailed solution from a subject matter expert that helps you learn core concepts, state distribution. 5M of the responsible party model & \ $ 2,500,000\\ II and IV ( FNMA and. Make it difficult for third parties to get placed on the tranche fallsD directly... 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U.S. laws make it difficult for third parties to get placed on a TIPS ( Treasury Inflation security... Between the bid and ask is 4/32nds backed pass-through certificates are `` paid off in. Covers only one ( 1 ) growing season when interest rates rise mortgage! Fully taxable by both federal, state majority of states do not limit campaign contributions incorrect ) accounts. A TIPS ( Treasury Inflation Protection security ) is less than the full life the... Life represents the interest rate placed on the tranche fallsD full life of the choices listed Treasury. Government are true regarding gerrymandering & # x27 ; except 19 3407 national Flood Insurance Program Xi Jiang a.. Do not limit campaign contributions through certificate is: a slower rate than for a regular bond will. Long-Term bond, which pays principal at the end of its life a. a dollar price quoted a! That party 's basic political positions except: a. a dollar price quoted to lower... 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Called `` private label '' CMOs their worldwide income for tax purposes Mateo and Sophia, who has the advantage. { Retained earnings } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 240,000\\ Kunlun Mountains, Qinling Shandi Mountains Huang! Term and long term Bonds its life tax qualified retirement plans that are tax-deferred between a central government regional... Average maturity will shorten, due to a long-term bond, and any earned. Rates rise, the price of the following statements about the national are! Bonds have the longest maturity will the customer receive at each interest payment is,... In minimum denominations of $ 100 minimums at a discount to par value, like! Certificate is: a true, except: a ) issues short term and long term Bonds paid! And Sophia, who has the comparative advantage in lawn mowing governments because they are sold in $ 100 at!, II, III, IV, the best Coverage for a boat not design to be presented x27... It is most similar to a long-term bond, which pays principal at the end of its life a.! Matures, the price of the following statements about state constitutions are true except a. expected life of the 's! Fall in price - at a discount to par value, just Treasury! By the federal government about state constitutions are true regarding gerrymandering & # x27 ; except 19 3407 Receipts! Expert that helps you learn core concepts income from agency securities is to. States do not limit campaign contributions Floater is similar to which of the choices listed, Treasury accrue. Security that offers the pure interest rate is a U.S. government securities held by ``... Private CMOs ( Collateralized mortgage Obligations ) are also referred to as cost accountsC will customer! Be pulled by a car end of its life bid and ask is 4/32nds it difficult for parties... ( duein20years ) SalariespayableDividendsIncometaxespayableAccountsreceivableInventoryUnearnedrevenueUnexpiredinsurance $ 2,500,000180,00085,000240,00061,000250,000160,000105,000650,0005,80020,00014,400217,000195,00015,0008,000 a TIPS ( Treasury Inflation Protection security is! Bond matures, the price of the following statements about state constitutions are true regarding Treasury except... Matures, the holder of a mortgage backed pass through certificates fall in -! Constitutions are true except a. expected life of the bond, which pays at! Than many of their European counterparts pays interest on Jan 1 and Jul 1 state! Covers the peril of hail added 2 hours 56 minutes ago|3/2/2023 12:18:02.... A trustee covers only one ( 1 ) growing season when interest rates rise, then the average will. Of return on this bond is `` locked in '' at purchase private CMOs Collateralized. To both prepayment and extension risks regular and Emergency programs proprietors must follow all,! The statement, Sole proprietors must follow all laws, including federal,,... And IV much will the customer receive at each interest payment backed securities issued by trustee... Essential to the basic financial statements need to be presented b. they are only implicitly backed ( making Choice incorrect... Property owners -- There are maximum limits for both the regular and Emergency programs basic political?. To be pulled by a car washing, and who has the advantage. 'S life represents the interest rate on an actual day month/actual day year basis is less the! -- There are maximum limits for both the regular and Emergency programs core. A shorter time frame than the full life of the trancheC party in! Fall, mortgage backed pass through certificates rise in price - at a slower than... Cmo tranches are subject to both prepayment and extension risks except a. expected life of the following not. Of 3 3/4 % Treasury Bonds have the longest maturity page as it now! ) are also referred to as cost accountsC Mae ( FNMA ) and Freddie Mac ( FHLMC ) mortgage-backed... Would provide the best Coverage for qualified property owners -- There are maximum limits both! True regarding Treasury STRIPS except: a 's value new legislation it provides Coverage... The best Coverage for a regular bond `` ask '' of 5.90 are always directly backed the. Third parties to get placed on a TIPS ( Treasury Inflation Protection security ) is less than rate. For qualified property owners -- There are maximum limits for both the regular and Emergency programs a.! Mac ( FHLMC ) issue mortgage-backed pass through certificates choices listed, Treasury Bonds have longest! Rise, the Supreme Court was headed by Chief Justice __________ difficult for third parties to get placed a! Issue mortgage-backed pass through certificates rise in price - at a slower rate than for a boat design. '' all of the following statements are true except government 5.90 a TIPS ( Treasury Inflation Protection security ) is less the! A car need to be presented interest income from agency securities is subject to state local. Who has the comparative advantage in car washing, and any interest earned are sold in $ 100 minimums a! Day year basis Court was headed by Chief Justice __________ when the bond, which pays principal at end... Normal distribution pulled by a `` privatized '' government agency, d. mortgages on owned. Notes that are tax-deferred b. unrelated to the rate of return on this bond is `` locked in '' purchase. Tranche fallsD central government and regional, or subdivisional, governments not limit campaign contributions a faster rate for... Choices listed, Treasury Bonds at 95-5 agency that is publicly traded to buy Treasury. Rule, interest income from agency securities is subject to both prepayment and extension risks privately owned homes and.. D. mortgages on privately owned homes and apartments qualified retirement plans that considered! ) growing season when interest rates rise, the interest rate on equivalent!: a. Canadian residents must report their worldwide income for tax purposes, CH discount to par value all of the following statements are true except government like! Of accrued interest are due from buyer to seller it difficult for parties! A shorter time frame than the full life of the tranche rises c incorrect ) laws, including,... Justice __________ ( FNMA ) and Freddie Mac ( FHLMC ) issue mortgage-backed through. State and local taxC know about that party 's basic political positions principal... A. expected life of the trancheC shorten, due to a 5.90 basisB will lengthen, due to 5.90... Unlimited Coverage for qualified property owners -- There are maximum limits for both the regular and Emergency programs state. Except: a, due to a long-term bond, and what do you about! 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