土豆妮

Which of the following is the best description of cash reserve funds as an internal credit enhancement? Cash reserve funds are investments in:

A) money market instruments created from securitizing mortgages.

B) U.S. Treasury bonds created from issuance proceeds.

C) money market instruments created from issuance proceeds.

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Cash reserve funds are cash deposits that come from issuance proceeds. This excess cash provides for the establishment of a reserve account to pay for future losses. Cash reserve funds are usually used along with external credit enhancements.