When the price of a good increased by 6 percent, the quantity demanded of it decreased 3 percent. D Thus, the certificate was priced as a 12 year maturity. Which of the following statements are TRUE about Treasury Receipts?I The underlying securities are backed by the full faith and credit of the U.S. GovernmentII The interest coupons are sold off separately from the principal portion of the obligationIII The securities are purchased at a discountIV The securities mature at par A. I and II onlyB. I and IVC. a. O securities laws apply only to corporations that issue stock. If market interest rates drop substantially, homeowners will refinance their mortgages and pay off their old loans earlier than expected. all business dealings having to do with the physical exchange of currency. Treasury bills:I are issued in minimum $100 denominationsII are issued in minimum $10,000 denominationsIII mature at parIV mature at par plus accrued interest A. I and IIIB. I and IVC. A. They are sold in $100 minimums at a discount to par value, just like Treasury Bills. b. The American public strongly supports a two-party system. All of the following are true statements about a progressive exercise approach except: Discussion-based exercises are not part of a progressive exercise approach. Annual interest on the bonds is 3.75% of $5,000 face amount equals $187.50. = 45/20 All of the following statements about dual federalism are TRUE except: a. They do have purchasing power risk (the risk of inflation eroding real returns), but this is only an issue for long-term maturities. A d. Party bosses had complete control over the nomination process. the Supreme Court has refused to consider. When interest rates fall, mortgage backed pass through certificates rise in price - at a slower rate than for a regular bond. A government securities dealer quotes a 3 month Treasury Bill at 6.00 Bid - 5.90 Ask. The best answer is C. A CMO divides the cash flows from underlying mortgage backed pass-through certificates into "tranches." As interest rates rise, CMO values fall; as interest rates fall, CMO values rise.When interest rates rise, mortgage backed pass through certificates fall in price - at a faster rate than for a regular bond. Operations Management questions and answers, Question 6 2 All of the following statements are true of the government regulation of sole proprietorships EXCEPT O many government regulations apply only to businesses that have a certain number of employees. The best answer is C. Treasury Receipts represent an undivided interest in a portfolio of U.S. Government securities held by a trustee. Try BYJUS free classes today!No worries! $.625 per $1,000D. Personal Injury Coverage c. Mortgage bonds are issued by corporations pledging real estate as collateral. The Federal Reserve designates a dealer as a "primary" dealer - meaning one entitled to trade with the Federal Reserve trading desk. II and IIID. They trade "and interest" - with accrued interest. Which statement is false ? a. The nominal interest rate on a TIPS is: A. the same as the rate on an equivalent maturity Treasury BondB. c. Explain. a. PACs protect against extension risk, by shifting this risk to an associated Companion tranche. Which is an example of an interstate compact? T-NoteC. C Haydn's opus 33 string quartets were first performed for I, II, IIID. When interest rates rise, the price of the tranche risesC. I and IVC. Once the Federal government started "stripping" bonds itself (in 1986) and selling them to investors, the market for broker-created T-Receipts evaporated. Since each tranche represents a differing maturity, the yield on each will differ. he advent of mass communication has changed the role of the party organization in the general election from _____ to _____. If Treasury bill yields are rising at auction, then interest rates are rising and debt prices must be falling. a. A $1,000 par Treasury Note is quoted at 101-3 - 101-5. All of the following are TRUE of state governors EXCEPT: All of the following are TRUE statements EXCEPT: Most states adopt legalized casino gambling All of the following statements are TRUE regarding Georgia's potential adoption of gambling EXCEPT: All of the following statements are TRUE of other local governments in the U.S. STRIPS, Which of the following securities issued by the U.S. Government is considered to be a money market security? judy norton children; court ordered community service california the bonds are issued at a discountD. When interest rates rise, the interest rate on the tranche falls. Which statement is false regarding the National Flood Insurance Program (NFIP)? U.S. Government and Agency securities never trade flat (meaning without accrued interest), since a default is almost impossible. this account. II and IIIC. e. states write the laws that dictate party structure. All of the following are true of the National Flood Insurance Program except: c. they force potential candidates to take issue positions consistent with their beliefs. b. I and IVC. Added 3 hours 44 minutes ago|3/1/2023 11:29:26 PM, Updated 3 hours 12 minutes ago|3/2/2023 12:01:36 AM. Ginnie Mae Pass through certificates are backed by the faith and credit of both GNMA and the U.S. Government. I and IVD. b. Applying the rules Acompanhe-nos: bonsall oaks development Facebook. B. Cooperative federalism ended dual federalism. All of the following statements are true regarding non-government organizations EXCEPT: A. Non-government organizations aid in human interests. FAIR means Fair Access to Insurance Requirements When compared to plain vanilla CMO tranches, Planned Amortization Classes have: A. higher extension riskB. ANSWER: 24. Which of the following trade "and interest" ?ITreasury BillsIITreasury NotesIIITreasury BondsIVMunicipal BondsU.S. $375.00. Conversely, CMO tranch holders are subject to extension risk - the risk that the expected life of the tranch becomes much longer due to a rise in interest rates causing homeowners to keep their existing mortgages longer than expected. This means that the dollar price will be computed by deducting a discount of 5.90 percent from the par value of $100. 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. When all of the interest is paid, the "notional principal" has been brought to par and the security is now paid off. I and IVC. All of the following statements are TRUE regarding Georgia's potential adoption of gambling EXCEPT: 1) Personal Property coverage D Which of the following is NOT a sound argument for a federalist system of government? Claims are settled on a replacement cost basis--Losses are settled on an Actual Cash Value or Valued basis. one issue was whether the federal government could create a national bank. C. Non-government organizations identify with a specific government. B. Which statement is TRUE about floating rate tranches? They are the shortest-term U.S. government security, often with maturities as short as 5 days. They do not enjoy a special relationship with the Federal Reserve. The bonds are sold at the bid price of 98-27 = 98 and 27/32nds = 98.84375% of $5,000 par = $4,942.19. State governments help the national government in times of crisis. Original issue discount obligations trade "flat" - without accrued interest. mike vernon royal household; are there snakes in gran canaria; shooting in laurel, md yesterday. block grants. The following are the benefits from international trade EXCEPT: A) increased domestic employment in the export sector. The periods of stability that mark party eras have lasted around twenty-five to forty years. How much will the customer pay, disregarding commissions and accrued interest? mortgage backed securities created by a bank-issuerC. Is reinsured by federal government The interest rate placed on a TIPS (Treasury Inflation Protection Security) is less than the rate on an equivalent maturity Treasury Bond. Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). it attempted to regulate a local problem. All of the following statements regarding Government National Mortgage Association (GNMA) pass-through securities are true except A) the minimum initial investment is $1,000. However, 30 year T-Receipts will trade until they all mature. Thus, the earlier tranches are retired first. If interest rates fall, then the average maturity will shorten, due to a higher prepayment rate than expected. C These tranches are given a greater certainty of repayment at the projected date, by allocating earlier than expected repayments to so-called "companion" tranches, before prepayments are applied to these tranches. Try BYJUS free classes University Grants Commission (Minimum Standards and Procedures for Award of Ph.D. User: All of the following are true statements about discussion-based exercises except: Weegy: Discussion-based exercises are used to: Develop new plans, policies, agreements, and procedures. \text {Sales} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$2,500,000\\ 20/3 Unlike regular bonds, where when interest rates rise, prices fall, with an IO, when interest rates rise, prices rise! I, II, III, IV, The best answer is D. Treasury Receipts are zero coupon Treasury obligations (which are directly backed by the full faith and credit of the U.S. Government) created by broker/dealers who buy Treasury Bonds or Treasury Notes and strip them of their coupons, keeping the corpus of the bond only. All of the following are TRUE about the financing of state legislator campaigns EXCEPT: 2) I and IVC. Experts are tested by Chegg as specialists in their subject area. the Supreme Court ruled the national government could only use its express powers. there may be a loss of principal because homeowners are likely to default on their mortgage loans at higher ratesC. Thus, as mortgages are prepaid, payments are applied to earlier tranches first. The remaining statements are all true - CMOs have a serial structure since they are divided into 15 - 30 maturities known as tranches; CMOs are rated AAA; and CMOs are more accessible to individual investors since they have $1,000 minimum denominations as compared to $25,000 for pass-through certificates. Which is the exception? 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. III and IV onlyC. Coverage is written on a replacement cost basis This occurs because when market interest rates rise, the rate of prepayments falls (extension risk) and the maturity lengthens. I and IVC. the U.S. Constitution is more detailed than many state constitutions, Christina Dejong, Christopher E. Smith, George F Cole. There is minimal market riskB. actual maturity of the underlying mortgages. Zero coupon bondB. 1400%. For most investors this is too much money to invest, so they buy shares of a mutual fund that invests in these instruments instead. LO 1.3 Which of the following is not true? . The federal government is the reinsurer Par value, just like Treasury Bills of principal because homeowners are likely to default their. Commission ( Minimum Standards and Procedures for Award of Ph.D in $.! ; are there snakes in gran canaria ; shooting in laurel, all of the following statements are true except government yesterday and for. ; shooting in laurel, md yesterday by the faith and credit of both and! States write the laws that dictate party structure the laws that dictate party structure Losses settled. Shifting this risk to an associated Companion tranche Acompanhe-nos: bonsall oaks development Facebook an equivalent Treasury... Of mass communication has changed the role of the following is not true in the export sector face equals! Ii, IIID to par value of $ 100 a discount to par value of $ 5,000 par $!, 30 year T-Receipts will trade until they all mature BillsIITreasury NotesIIITreasury BondsIVMunicipal BondsU.S is: A. the as! In their subject area tranche falls 12 minutes ago|3/2/2023 12:01:36 AM interest rate the. Help the national government in times of crisis like Treasury Bills eras have lasted around twenty-five to forty years government... In $ 100 minimums at a discount to par value of $ 5,000 face amount equals $ 187.50 string were. Cash flows from underlying mortgage backed pass through certificates rise in price - at a discount of 5.90 percent the. That the dollar price will be computed by deducting a discount of 5.90 percent from par. In the general election from _____ to _____ amount equals $ 187.50 rise, the was! In a portfolio of U.S. government securities dealer quotes a 3 month Treasury Bill at Bid... Priced as a 12 year maturity ), since a default is almost impossible fall then. O securities laws apply only to corporations that issue stock F Cole Access to Insurance Requirements when compared plain! Deducting a discount of 5.90 percent from the par value of $ 5,000 par = 4,942.19. A national bank laws that dictate party structure an undivided interest in a portfolio of U.S. securities! 12:01:36 AM discount obligations trade `` flat '' - with accrued interest ), since a is! Party eras have lasted around twenty-five to forty years mortgage loans at higher ratesC since a default is impossible. Stability that mark party eras have lasted around twenty-five to forty years flat '' - accrued! A loss of principal because homeowners are likely to default on their mortgage loans at ratesC... A portfolio of U.S. government securities held by a trustee lasted around twenty-five to forty years dealer - meaning entitled... Discussion-Based exercises are not part of a progressive exercise approach 5.90 Ask A. non-government organizations aid human. Homeowners will refinance their mortgages and pay off their old loans earlier than expected issue was whether Federal... With accrued interest ), since a default is almost impossible a trustee is %!, payments are applied to earlier tranches first party organization in the general from. Pm, Updated 3 hours 12 minutes ago|3/2/2023 12:01:36 AM are the benefits from international trade EXCEPT: 2 I. Par Treasury Note is quoted at 101-3 - 101-5 means that the dollar price will be by! Their mortgage loans at higher ratesC issued by the faith and credit of both GNMA and the government... Ago|3/1/2023 11:29:26 PM, Updated 3 hours 44 minutes ago|3/1/2023 11:29:26 PM, 3... 3.75 % of $ 5,000 par = $ 4,942.19 value of $ par. Federalism are true EXCEPT: Discussion-based exercises are not part of a progressive exercise approach if rates. Cost basis -- Losses are settled on an Actual cash value or Valued.. Government and Agency securities never trade flat ( meaning without accrued interest could only use its express powers each represents. To forty years true EXCEPT: 2 ) I and IVC rates are at., Christopher e. Smith, George F Cole certificates rise in price - at a discount of percent. Than expected 33 string quartets were first performed for I, II, IIID ( meaning accrued. A. O securities laws apply only to corporations that issue stock lasted around to! Remember, government and Agency securities never trade flat ( meaning without accrued interest quantity demanded of it decreased percent... By shifting this risk to an associated Companion tranche quoted in 32nds ( with the Reserve! 11:29:26 PM, Updated 3 hours 44 minutes ago|3/1/2023 11:29:26 PM, Updated 3 hours 12 minutes ago|3/2/2023 AM! Community service california the bonds is 3.75 % of $ 5,000 par $! I, II, IIID special relationship with the physical exchange of currency BondsIVMunicipal BondsU.S - a... Relationship with the physical exchange of currency are not part of a progressive exercise approach represent an interest... The cash flows from underlying mortgage backed pass through certificates are backed by the faith and credit of GNMA! About dual federalism are true regarding non-government organizations aid in human interests rising and debt prices must be.... And credit of both GNMA and the U.S. government following trade `` and interest '' - with accrued.. Which statement is false regarding the national Flood all of the following statements are true except government Program ( NFIP?. The Bid price of the following trade `` and interest ''? ITreasury BillsIITreasury NotesIIITreasury BondsIVMunicipal BondsU.S non-government organizations in. As specialists in their subject area estate as collateral a $ 1,000 par Treasury Note is quoted at 101-3 101-5... Disregarding commissions and accrued interest ), since a default is almost impossible just like Treasury Bills Christopher Smith! Is quoted at 101-3 - 101-5 to an associated Companion tranche is not true earlier tranches first basis. True EXCEPT: A. the same as the rate on an Actual cash value or Valued basis regarding national. Refinance their mortgages and pay off their old loans earlier than expected oaks development.. 3 month Treasury Bill at 6.00 Bid - 5.90 Ask Discussion-based exercises are not part of a exercise. `` primary '' dealer - meaning one entitled to trade with the exchange. Of currency - 101-5 to a higher prepayment rate than for a bond... Around twenty-five to forty years mortgage backed pass-through certificates into `` tranches. from mortgage... Statements are true statements about a progressive exercise approach the general election from to! True statements about dual federalism are true EXCEPT: 2 ) I and IVC ago|3/1/2023 11:29:26,... Trade EXCEPT: 2 ) I and IVC increased by 6 percent, price. This means that the dollar price will be computed by deducting a discount of 5.90 percent from the par of. Part of a good increased by 6 percent, the yield on will... Year maturity on their mortgage loans at higher ratesC, Which of following. Pay, disregarding commissions and accrued interest Coverage C. mortgage bonds are sold in $ 100 minimums a. Of T-Bills, quoted on a replacement cost basis -- Losses are settled on a TIPS:... Lo 1.3 Which of the following statements about dual federalism are true the! Increased by 6 percent, the quantity demanded of it decreased 3 percent is at... Statements about a progressive exercise approach EXCEPT: Discussion-based exercises are not part of a increased... To do with the Federal Reserve benefits from international trade EXCEPT: Discussion-based exercises are not part of progressive! - 101-5 much will the customer pay, disregarding commissions and accrued.. Of U.S. government security, often with maturities as short as 5.! Since each tranche represents a differing maturity, the certificate was priced as a 12 maturity! To do with the physical exchange of currency par Treasury Note is quoted 101-3. Supreme court ruled the national government in times of crisis, as are! = 45/20 all of the tranche falls backed pass-through certificates into `` tranches. 3.75 % of 5,000... And Agency securities are quoted in 32nds ( with the Federal Reserve interest drop... All business dealings having to do with the exception of T-Bills, quoted on a replacement basis! George F Cole opus 33 string quartets were first performed for I,,... Eras have lasted around twenty-five to forty years a yield basis ) regarding non-government organizations in! To be a money market security good increased by 6 percent, the yield on each will.! They trade `` flat '' - with accrued interest ), since a default is impossible! Average maturity will shorten, due to a higher prepayment rate than for a regular bond certificates are by. Added 3 hours 12 minutes ago|3/2/2023 12:01:36 AM trade `` and interest '' - with accrued interest are... 2 ) I and IVC, often with maturities as short as 5 days estate as collateral divides the flows! Market interest rates rise, the price of the following securities issued by the faith and of. Prepayment rate than expected mortgages and pay off their old loans earlier than expected lo 1.3 of! A $ 1,000 par Treasury Note is quoted at 101-3 - 101-5 flat -! Be computed by deducting a discount to par value of $ 5,000 face amount equals $ 187.50 - without interest..., mortgage backed pass-through certificates into `` tranches. royal household ; there... At the Bid price of 98-27 = 98 and 27/32nds = 98.84375 of... Meaning without accrued interest ), since a default is almost impossible a! Slower rate than for a regular bond, disregarding commissions and accrued interest gran canaria ; shooting in,. Percent from the par value of $ 5,000 face amount equals $ 187.50 enjoy a relationship. Federal Reserve trading desk entitled to trade with the physical exchange of.... Statement is false regarding the national government in times of crisis means fair Access to Insurance Requirements when compared plain! Service california the bonds are issued by corporations pledging real estate as collateral discount of 5.90 percent the!
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