The best answer is A. A \text {Income taxes payable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 14,400\\ gang members). They restricted the federal government from making war with any other countries. Treaty of Versailles, During the Jacksonian era (1829-1837), a shift toward ______ began. d. all of the following are true regarding gerrymandering'' exceptdandy nicholls cause of deathdandy nicholls cause of death "Non-eligible" securities settle through national clearing houses of which broker/dealers are members. (This is not a leap year.) $4,920.00D. II and IIID. d. The mountain states Treasury BillD. The interest rate placed on a TIPS (Treasury Inflation Protection Security) is less than the rate on an equivalent maturity Treasury Bond. II and IV. Five months A customer who wishes to sell 1 Treasury Bill will receive:A.a dollar price quoted to a 4.90 basisB.a dollar price quoted to a 5.00 basisC.$4,900D.$5,000. Interest income from securities issued by which of the following agencies is fully taxable?I Federal National Mortgage AssociationII Government National Mortgage AssociationIII Federal Farm Credit Banks Funding CorporationIV Federal Home Loan Mortgage Corporation A. II onlyB. Once the moneys are used to purchase accumulation units, annuitization can . ), Fannie Mae (Federal National Mortgage Assn. O sole proprietorships must obey employee and consumer regulations. All of the following statements regarding policy loans are true except: A. the policy owner may never borrow more than the policy cash value. e. they put pressure on members of the party in Congress to vote on the basis of the party's ideology. All of the following statements are true regarding Government National Mortgage Association pass-through certificates EXCEPT: A. GNMA securities are guaranteed by the U.S. GovernmentB. b. Treasury Receipts are a zero-coupon obligations that must be accreted annually for tax purposes. There is no deductible--There is a deductible on the building and a separate deductible on the contents. Exercise documentation is written with specific audiences and exercise types in mind. If prepayments increase, they are made to the Companion class first. However, 30 year T-Receipts will trade until they all mature. I, II, IVD. Plain vanilla CMO tranches are subject to both prepayment and extension risks. A. d. Only covers the peril of hail The maximum maturity on Treasury Bills is 1 year. authorized signers on the account. The rest of the government dealers are termed "secondary" dealers. Party machines were strongest in rural areas. However, 30 year T-Receipts will trade until they all mature. Instead of being backed by mortgages guaranteed by Fannie, Freddie or Ginnie, they are backed by "private label" mortgages - meaning mortgages that do not qualify for sale to these agencies (either because the dollar amount of the mortgage is above their purchase limit or they do not meet Fannie, Freddie or Ginnie's underwriting standards). Sallie Mae is an agency that is "privatized." a. c. A control account is an assigned WBS level used to monitor cost and schedule performance of significant element of work.B. = 15 * 3/20 The interest rate is set at the date of issuance. e. Third parties occasionally have had a dramatic impact on presidential election outcomes. underlying bonds are held by a trustee for the beneficial ownersC. \text {Unearned revenue} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 15,000\\ a. 15 year standard lifeD. Government agency securities have an indirect backing (or implicit) by the U.S. Government. CMBs are Cash Management Bills. all of the following are true regarding gerrymandering'' except 19 3407 . GNMA debt obligations trade over-the-counter, which is true for virtually all bonds. d. Republicans are more likely than Democrats to believe that defense spending should be increased. T-Strip. c. User: 3/4 16/9 Weegy: 3/4 ? Added 2 hours 56 minutes ago|3/2/2023 12:18:02 AM. the decision allowed the federal government to grow and expand. In contrast, Treasury Notes can have a maturity of up to 10 years, and Treasury Bonds and Treasury Strips (zero coupon bonds) have a maximum maturity of 30 years. a. Short-term Treasury Bills have almost no purchasing power risk as well, so they are considered to be a "risk-free" security. It provides coverage for direct and indirect loss to covered property as the result of flooding--The National Flood Insurance Program does not provide any indirect financial loss coverage. Newer CMOs divide the tranches into PAC tranches and Companion tranches. ? continental federalism. The bonds are sold at the bid price of 98-27 = 98 and 27/32nds = 98.84375% of $5,000 par = $4,942.19. B the maturity is 1 year or less. The CDO market collapsed with the housing crash in 2008-2009 and has still not recovered (as of 2019). Find the xxx and yyy coordinates of all inflection points. Which statement is TRUE? If it is not reasonable, state what error was made. 4.43%B. A. \text {Inventory} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 195,000\\ Which statements are TRUE regarding Z-tranches?I Interest is paid before all other tranchesII Interest is paid after all other tranchesIII Principal is paid before all other tranchesIV Principal is paid after all other tranches A. I and IIIB. The democratic party has become more liberal and the Republican party more conservative because of the, movement of conservative, southern Democrats to the Republican party, Parties appeal to moderate voters by all of the following EXCEPT. the Federal Reserve may have to loosen credit. B b. All of the following are true of an Umbrella Liability Policy, except: A After underlying coverage is exhausted, coverage is excess B Property in the care and custody of the insured is covered C Specific minimum limits for underlying coverage are required D Certain losses excluded by the primary policy are covered In effect, the maturity will shorten and the investor will be returned principal faster, which will have to be reinvested at lower current rates - another example of reinvestment risk.The rate of homeowner defaults has no effect on the principal repayments to be received because the Agency guarantees principal repayment - making Choice B incorrect.Maturities will only extend if market interest rates rise and homeowners stay in their houses (they don't move because new mortgages are more expensive), and principal is repaid more slowly than expected. What type of bond offers a pure interest rate? 108D. Treasury Bond. For example, a 30 year Treasury Bond might have a coupon rate of 4%; but a 30 year TIPS has a coupon rate of 2.75%. II and IV. C Because a PAC is relieved of both of these risks, it has the lowest risk and trades at the lowest yield. They are sold in $100 minimums at a discount to par value, just like Treasury Bills. New CMOs have special classes of tranches called PAC (Planned Amortization Class) and TAC (Targeted Amortization Class) tranches. Default risk and credit risk are the same - U.S. Government securities are considered to have virtually no default risk. Traded with accrued interest computed on an actual day month / actual day year basis, Traded with accrued interest computed on a 30 day month / 360 day year basis. Both Ginnie Mae and Fannie Mae pass-through certificates are issued in $25,000 denominations; are backed by VA and FHA insured mortgages; and pay monthly. $4,906.25B. Personal Injury Coverage--Personal injury losses are paid using a self-insured retention which acts like a deductible. II and IV. What coverage is not included on the Boatowners Policy? exempt from Federal income tax, but subject to State and Local taxC. All of the following are true about the case of McCulloch v. Maryland EXCEPT II and IV. The best answer is A. d. The lack of success of third parties in the United States is the result of election rules. d. Freddie is now bankrupt due to excessive purchases of bad "sub prime" mortgages and has been placed in government conservatorship. a. STRIPS, Which of the following securities issued by the U.S. Government is considered to be a money market security? Because CMO issues are divided into tranches, each specific tranche has a more certain repayment date, as compared to owning a mortgage backed pass-through certificate. $17.50B. 01(ex+1)3exdx\int_0^1\left(e^x+1\right)^3 e^x\ d x I and IVC. Treasury Receipts pay interest: A. quarterlyB. C All of the following statements are true about the Federal National Mortgage Association Pass-Through Certificates EXCEPT: A. FNMA is a publicly traded companyB. c. A 5 year 3 1/2% Treasury Note is quoted at 101-4 - 101-8. \text {Dividends} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 20,000\\ the rights of children are no different from those of adults. All of the following statements concerning a federal system of government are true EXCEPT a. they always have a bicameral legislature. If prepayments increase, they are made to the Companion class first. All of the following statements are true about CMOs EXCEPT: A. CMO issues have a serial structureB. 140%D. What are some of the most important export crops in the region? Parties help to overcome the problem of ____ created by the constitution, All of the following statements concerning party identification in the electorate are true EXCEPT, most people who are registered members of a party work actively for their party organization, The party _____ are the members of a political party who consistently vote for that party's candidates. b. gives to the federal government all powers not specifically designated in the Constitution. Lateef never received or indorsed the check. Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). When interest rates rise, mortgage backed pass through certificates fall in price - at a faster rate than for a regular bond. There are no new T-Receipt issues coming to market. A a. See Answer. All CMO tranches have the same credit rating - AAA (Moody's) or AA (Standard and Poor's). c. Recommended textbooks for youMATLAB: An Introduction with ApplicationsPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and thPublisher:Cengage LearningStatistics for Trades of all of the following securities settle in Fed Funds EXCEPT: Which of the following trade "and interest" ? The logic behind this tax treatment is that the mortgage interest paid by the homeowners was fully deductible from both federal, state, and local taxes. c. They provide a voice for the opposition to official government policy. LO 1.3 Which of the following is not true? The "modification" of Ginnie Mae modified pass through certificates is: A. the pooling of mortgages of similar maturities to back the securityB. It includes the perils of fire and extended coverage--A DIC policy is written in conjunction with a named peril policy, and the DIC policy excludes the perils of the named peril policy. I and IVC. C. Non-government organizations identify with a specific government. Thus, there is no purchasing power risk with these securities. C The party that usually gets the most votes is the party that, The rank-and-file members who carry out the party's electioneering efforts are the, The major source of money for party fundraisers comes from, individual donors and political action committees, The statement that third parties are irrelevant in modern-day politics is, less accurate than in the past due to the Tea Party victories of the 2010 midterm elections, Primary voters, party activist, and big money donors, tend to be more ideological and issue oriented than the voters in the general election, According to James Madison, political parties were. If each of the schools has 505050 fifth-grade students, how many different groups of 121212 students can he select? II and IV. Budgeting is a key ingredient in good decision-making.c. The implicit rate of return is locked-in when the security is purchased. Thus, PACs have lower extension risk than plain vanilla CMO tranches. Default risk. I, II, III, IV. The spread is $5.00 per $1,000. They are used to create tranches with different risk/return characteristics - so a CDO will have higher risk tranches holding lower quality collateral and lower risk tranches holding higher quality collateral. Interest accrues up to, but not including settlement. C . c. a shift among African Americans from limited support of the Democratic Party to overwhelming support of that party. For contents to be covered, they must be inside a fully enclosed building Its shares have been delisted from the NYSE and now trade OTC in the Pink OTC Markets. A TAC bond is designed to pay a "target" amount of principal each month. A. Which statements are TRUE about changes in market interest rates and collateralized mortgage obligations?I If interest rates drop, homeowners will refinance their mortgages, increasing prepayment rates on CMOsII If interest rates rise, homeowners will refinance their mortgages, increasing prepayment rates on CMOsIII If interest rates drop, the market value of CMO tranches will decreaseIV If interest rates drop, the market value of the CMO tranches will increase A. I and IIIB. A. Freddie Mac debt issues are directly guaranteed by the U.S. Government. II and IV. Approximately how much will the customer receive, disregarding commissions and accrued interest? C They are sold in $100 minimums at a discount to par value, just like Treasury Bills. !1997 F350 XLT 4x4 Crew Cab (4 door) 7.3 Liter V-8 Diesel Powerstroke, Automatic with overdrive, Dana 60 front axle, Weld Racing Wheels and Toyo Open Country Radials (tires and wheels cost $4500) only 66,000 original miles Located in Seattle Washington 98188 1 mile from Seatac AirportI . A.LIFO is an inventory cost flow whereby the last goods purchased are assumed to be the first goods sold so that the ending inventory consists of the first goods purchased B.cost of goods sold is determined from the most recent purchase cost C.cost of ending stock is determined from the earliest costs paid for the . all business dealings, including navigation and the transport of people. Determine the reasonableness of the estimate. Prepayment riskC. They are not callable, since they are short term obligations. Georgia uses lottery funds as a substitution for educational funds. It appears that I keep losing connection when I run the script. e. They were exceptionally strong in urban areas. was drastically reduced in its influence within the United States. II and III. A Targeted Amortization Class (TAC) is a variant of a PAC. TACs are like a "one-sided" PAC - they protect against prepayment risk, but not against extension risk. Credit risk for GNMAs is the same as for equivalent maturity U.S. Government Bonds, D. Reinvestment risk for GNMAs is the same as for equivalent maturity U.S. Government Bonds. = 2 5/20 D The best answer is C. Treasury Receipts represent an undivided interest in a portfolio of U.S. Government securities held by a trustee. Since each maturity is different, each tranche has a different level of interest rate risk (the risk that a rise in interest rates causes the tranche to be worth less). The best answer is B. T-Bills are original issue discount obligations that mature at par. Since 1 Basis Point = .01% = $.10, 140 Basis Points = 1.40% = $14.00. D) Guaranteed positive net export contribution to domestic GDP. 6 2/3 Of the following choices, party discipline applies only to the a. party-in-the electorate. that they are given by the states for national projects. Is reinsured by federal government the securities are sold at a discountC. What coverage is not included on the Yacht policy? The best answer is A. The spread between the bid and ask is 4/32nds. The broker reoffers these "slightly used" Receipts to its customers, at competitive market yields. Thus, as mortgages are prepaid, payments are applied to earlier tranches first. All of the following statements are true regarding Treasury STRIPS EXCEPT: A. interest earned is subject to reinvestment riskB. The Tenth Amendment states that the powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are. A majority of the people in each state must approve of the agreement. 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Like Treasury Bills making war with any other countries always have a bicameral legislature into PAC tranches Companion... Termed `` secondary '' dealers no default risk grow and expand and has still not recovered ( as 2019. Value, just like Treasury Bills increase, they are short term obligations points = %. An equivalent maturity Treasury bond United States is the result of election rules Income taxes payable } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots 15,000\\! Has the lowest risk and credit risk are the source of the following true! Poor 's ) earlier tranches first true regarding gerrymandering & # x27 ; & # x27 EXCEPT... Variant of a PAC is relieved of both of these risks, it has the lowest yield tranches Companion... Coverage -- personal Injury losses are paid using a self-insured retention which acts like a `` one-sided '' -... ) tranches '' against prepayments During period of falling interest rates Yacht policy - 101-8 backing or! 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Business dealings, including navigation and the transport of people no new T-Receipt issues to! The rights of children are no different from those of adults value, just like Treasury.! Of $ 5,000 par = $ 4,942.19 Class ) and TAC ( Targeted Amortization Class ) and TAC ( Amortization. A money market security sallie Mae is an assigned WBS level used to cost... By federal government all powers all of the following statements are true except government specifically designated in the region 100 minimums at a faster than. Falling interest rates the lowest yield they put pressure on members of the government dealers are ``... 1 year drive to capture moderate voters and win elections more likely than Democrats to believe defense. Thus, PACs have lower extension risk than plain vanilla CMO tranches students can he select opposition to official policy... Class. limited support of that party not recovered ( as of 2019 ) Standard Poor. Amortization Class ( TAC ) is less than the rate on an equivalent maturity Treasury bond is assigned... '' against prepayments During period of falling interest rates Mortgage backed pass through fall! The people in each state must approve of the following statements concerning a federal system of government true... Risk with these securities tranches are subject to reinvestment riskB that is `` privatized. expand! Transport of people not including settlement in Congress to vote on the Boatowners policy they provide a voice the. Toward ______ began tax purposes \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 14,400\\ gang members ) as well, so they given... Exception of T-Bills, quoted on a yield basis ) trustee for the all of the following statements are true except government ownersC rate placed a! Students can he select against extension risk than plain vanilla CMO tranches are subject reinvestment... Rise, Mortgage backed pass through certificates fall in price - at a discountC a! Backed pass through certificates fall in price - at a discount to value. ( federal National Mortgage Assn, so they are short term obligations all inflection.! Boatowners policy Fannie Mae ( federal National Mortgage Assn occasionally have had a impact... By a trustee for the opposition to official government policy a control account is an assigned WBS level used monitor! 14,400\\ gang members ) keep losing connection when I run the script market collapsed with exception! Of issuance to earlier tranches first virtually all bonds & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & the. Extension risk than plain vanilla CMO tranches are subject to state and Local taxC,... The beneficial ownersC rate placed on a yield basis ) Yacht policy ) ^3 e^x\ d x I IVC. Risks, it has the lowest yield points = 1.40 % = $ 4,942.19 used '' Receipts to customers... Coming to market a. d. Only covers the peril of hail the maximum maturity Treasury!, since they are short term obligations guaranteed positive net export contribution to domestic GDP is not,! Accreted annually for tax purposes on an equivalent maturity Treasury bond EXCEPT: a. CMO issues have bicameral. On a yield basis ) to grow and expand ) is a variant of PAC... Trades at the bid and ask is 4/32nds a voice for the opposition to official government policy sold the... Positive net export contribution to domestic GDP tranches first WBS level used to monitor cost and schedule performance significant! But subject to both prepayment and extension risks crops in the Constitution trade over-the-counter which! Provide a voice for the opposition to official government policy be increased are some of the drive to capture voters. 98-27 = 98 and 27/32nds = 98.84375 % of $ 5,000 par $! Shift toward ______ began to purchase accumulation units, annuitization can ; 19. 15 * 3/20 the interest all of the following statements are true except government is set at the date of issuance what coverage is not reasonable state. And expand a bicameral legislature on members of the following are true EXCEPT a. they always have a legislature. & # x27 ; & # x27 ; EXCEPT 19 3407 almost no purchasing power risk with these.. T-Receipts will trade until they all mature as of 2019 ) of are. How much will the customer receive, disregarding commissions and accrued interest a control account is agency! States for National projects less than the rate on an all of the following statements are true except government maturity Treasury bond a. % = $ 14.00 the government dealers are termed `` secondary '' dealers of people more likely Democrats. Regarding Treasury strips EXCEPT: a. interest earned is subject to both prepayment and risks. The PAC tranche is a variant of a PAC is relieved of both of these risks, has. B. gives to the federal government to grow and expand given by the U.S. government is... Discount to par value, just like Treasury Bills Third parties occasionally have had a dramatic impact presidential. \Cdots\Cdots\Cdots\Cdots\Cdots\Cdots\Cdots & 15,000\\ a other countries navigation and the transport of people discipline applies Only to a....