Which of the following is true about mortgage-backed securities?

I) They aggregate individual home mortgages into homogeneous pools.

II) The purchaser receives monthly interest and principal payments received from payments made on the pool.

III) The banks that originated the mortgages maintain ownership of them.

IV) The banks that originated the mortgages continue to service them.

A. loans

B. bonds and mortgages

C. trade debt

D. other loans

E. marketable securitie

A. primary

B. secondary

C. over the counter

D. primary and secondary

E. primary and over the counter

A. Sarbanes-Oxley

B. Glass-Steagall

C. SEC

D. Sarbanes-Oxley and SEC

E. Fair Credit

A. buy the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.

B. sell the underlying asset at the exercise price on or before the expiration date.

C. sell the option in the open market prior to expiration.

D. sell the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.

E. buy the underlying asset at the exercise price on or before the expiration date

A. equipment and software

B. inventory

C. real estate

D. trade credit

E. marketable securities

A. market new stock and bond issues for firms

B. provide advice to the firms as to market conditions, price, etc

C. design securities with desirable properties

D. make trades for small investors to market conditions, price, etc, and design securities with desirable properties with desirable properties

E. market new stock and bond issues for firms, provide advice to the firms as Investment bankers market new stock and bond issues for firms, provide advice to the firms as to market conditions, price, etc, and design securities

A. Stocks

B. Bonds

C. Derivatives

D. Collateralized debt obligations

E. TIPS.