Which of the Below Statements Is TRUE

Multiple Choice

Which of the below statements is TRUE?

A) The pass-through securities issued by Freddie Mac are referred to as Mortgage-Backed Securities; Fannie Mae uses the term Participation Certificate (PC) to describe its pass-through security.
B) An investor who owns pass-through securities knows what the cash flow will be.
C) A mortgage loan effectively grants the borrower the right to call the loan at a discount.
D) The adverse consequence when mortgage rates decline is referred to as contraction risk.