The type of security backed by mortgage cash flows and are packed by financial instruments is classified as _____________?
Correct answer: B. securitized mortgage
- A. cash mortgage
- B. securitized mortgage
- C. financial mortgage
- D. instrumental mortgage
Explanation
A securitized mortgage represents mortgage cash flows that have been pooled and converted into tradable financial securities. The more standard name is a mortgage-backed security, but option b is the intended equivalent.
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