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LOS e, (Part 2): Describe the cash flow and prepayment characteristics for securities backed by student loans, SBA loans, and credit card receivables.
Q1. Which of the following regarding student loan asset-backed securities (SLABs) is least accurate?
A) Federal Family Education Loan Program (FFELP) loans are guaranteed up to 98% of principal and accrued interest.
B) The borrower makes no payment during the deferment period and no interest accrues.
C) Alternative loans are securitized and guaranteed by the U.S. government.
Q2. Which of the following statements regarding student loan asset-backed securities (SLABs) is FALSE?
A) Loan repayments are based on a reference rate plus a margin.
B) Prepayments occur when government guarantees are paid in the case of defaults.
C) Interest accrues on the loan during the deferment period.
Q3. Which of the following statements regarding Small Business Administration (SBA) loan-backed securities is least accurate?
A) SBA loans are backed by the credit of the U.S. government.
B) Most SBA loans are based on the prime rate.
C) Prepayments on SBA loans are not passed through.
Q4. Which of the following statements regarding Small Business Administration (SBA) loan-backed securities is FALSE?
A) Pooled SBA loans are fairly heterogeneous.
B) Loan payments are based on the reference rate at the beginning of each period.
C) The interest rate on SBA loans is reset monthly or quarterly.
Q5. Which of the following statements regarding credit card receivable-backed securities is FALSE?
A) Credit card receivable-backed securities use a master trust structure.
B) The cash flow to the pool of credit card receivables consists of finance charges, fees, and principal repayment.
C) Credit card receivable-backed securities pay principal and interest each payment just like a mortgage-backed security.
Q6. Which of the following is referred to as principal-amortization period for a credit card receivable-backed security? The principal-amortization period is the period during which the:
A) principal is reinvested.
B) principal is no longer reinvested, but paid to investors.
C) interest is reinvested.
Q7. Which of the following is TRUE concerning the early amortization trigger for a credit card receivable-backed security? An early amortization trigger leads to:
A) credit card tranches being retired sequentially.
B) partial default.
C) the principal payments made by credit card holders being reinvested in receivables.
Q8. Which of the following is referred to as a lockout period for a credit card receivable-backed security? A lockout period is a specific period of time during which:
A) credit card borrowers are not allowed to make repayments.
B) interest payments made by credit card borrowers are retained by the trustee.
C) principal payments made by credit card borrowers are retained by the trustee.
Correct answer is C) | 
发表于 2009-3-26 10:12
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