1.A debenture is:

A)    a bond secured by specific assets.

B)    a mortgaged bond.

C)    a short-term debt.

D)    an unsecured bond.

2.The most popular form of credit enhancement is the senior-subordinated structure. What does the senior-subordinated collateral structure shown below indicate?

A)    The subordinated tranche is protected by the senior tranche.

B)    All collateral receives equal treatment and is distributed pro rata.

C)    The first $40 million of losses are absorbed by the subordinated tranche.

D)    The subordinated tranche investor receives $40 million in repayment first. Then the cash flow goes to the senior tranche.

3.Which of the following institutions is NOT a government-sponsored enterprise (GSE)?

A)    Government National Mortgage Association.

B)    Student Loan Marketing Association.

C)    Federal National Mortgage Association.

D)    Federal Farm Credit System.

4.Which of the following institutions are federally-related institutions?

A)    Student Loan Marketing Association.

B)    Government National Mortgage Association.

C)    Federal National Mortgage Association.

D)    Federal Farm Credit System.

5.Which of the following institutions has debt that is backed by the full faith and credit of the U.S. government?

A)    Student Loan Marketing Association.

B)    Federal National Mortgage Association.

C)    Government National Mortgage Association (Ginnie Mae).

D)    Federal Home Loan Mortgage Association.

6.A mortgage-backed security has the following characteristics:

§   It was created by pooling a collection of more than a thousand mortgages

§   Not all investors face the same prepayment risk

§   Investors receive three distinct kinds of cash flows

§   Freddie Mac issued the security

This security is a(n):

A)    agency debenture.

B)    stripped mortgage-security.

C)    mortgage passthrough security.

D)    collateralized mortgage obligation.

答案和详解如下：

1.A debenture is:

A)    a bond secured by specific assets.

B)    a mortgaged bond.

C)    a short-term debt.

D)    an unsecured bond.

The correct answer was D)

A debenture by definition is unsecured debt.

2.The most popular form of credit enhancement is the senior-subordinated structure. What does the senior-subordinated collateral structure shown below indicate?

Senior tranche:  $560 million

Subordinated tranche:   $40 million

A)    The subordinated tranche is protected by the senior tranche.

B)    All collateral receives equal treatment and is distributed pro rata.

C)    The first $40 million of losses are absorbed by the subordinated tranche.

D)    The subordinated tranche investor receives $40 million in repayment first. Then the cash flow goes to the senior tranche.

The correct answer was C)

The loss of $40 million is applied to the subordinated tranche first and since it is large enough to absorb the entire loss, all $40 million is applied to the subordinated tranche.

3.Which of the following institutions is NOT a government-sponsored enterprise (GSE)?

A)    Government National Mortgage Association.

B)    Student Loan Marketing Association.

C)    Federal National Mortgage Association.

D)    Federal Farm Credit System.

The correct answer was A)

Federally-related (or government-owned) agencies are arms of the federal government. All other institutions listed are government-sponsored enterprises.

4.Which of the following institutions are federally-related institutions?

A)    Student Loan Marketing Association.

B)    Government National Mortgage Association.

C)    Federal National Mortgage Association.

D)    Federal Farm Credit System.

The correct answer was B)

Federally-related (or government-owned) agencies are arms of the federal government. All other institutions listed are government-sponsored enterprises.

5.Which of the following institutions has debt that is backed by the full faith and credit of the U.S. government?

A)    Student Loan Marketing Association.

B)    Federal National Mortgage Association.

C)    Government National Mortgage Association (Ginnie Mae).

D)    Federal Home Loan Mortgage Association.

The correct answer was C)

The Government National Mortgage Association is the only item listed that is backed by the full faith and credit of the U.S. government.

6.A mortgage-backed security has the following characteristics:

§   It was created by pooling a collection of more than a thousand mortgages

§   Not all investors face the same prepayment risk

§   Investors receive three distinct kinds of cash flows

§   Freddie Mac issued the security

This security is a(n):

A)    agency debenture.

B)    stripped mortgage-security.

C)    mortgage passthrough security.

D)    collateralized mortgage obligation.

The correct answer was D)

While most mortgage-backed securities pay three types of cash flows, only mortgage passthroughs and collateralized mortgage obligations (CMOs) are formed by pooling mortgages. Only CMOs divide investors into tranches with different cash flows and risk profiles. Debentures are securities not backed by collateral.