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Which of the Following Is NOT True Regarding Mortgaged-Backed Securities(MSB)

Question 124

Multiple Choice

Which of the following is NOT true regarding mortgaged-backed securities(MSB) ?


A) MSB are sold to investors who can hold them as an investment or resell them to other investors.
B) The MSB process allows the mortgage bank or other financial institution that made the original mortgage loan to get its money back out of the loan and lend it to someone else.
C) Securitization provides liquidity to the mortgage market and makes it possible for banks to loan more money to home buyers.
D) All of the above statements are true.

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