D The annual accretion amount is subject to Federal income tax each year, as the underlying securities are U.S. Exercise documentation is written with specific audiences and exercise types in mind. and Jul. \text {Mortgage payable (due in 20 years)} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 650,000\\ Fiscal adequacy b. Interest received by the holder of a mortgage backed pass through security is fully taxable by both federal, state, and local government. are actively traded in the secondary market. There is usually a cap on how high the rate can go and a floor on how low the rate can drop. A. c. The United States does not allocate its legislative seats proportionally. A customer buys 5M of the notes. Question: 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. Can this binomial distribution be approximated with a normal distribution? Throughout American history the balance of parties has usually resulted in different parties controlling the executive and legislative branches of the federal government. Interest is "earned" monthly and credited to the principal amount every 6 months. Either political party may use the filibuster b. The system in which successful party candidates reward supporters with jobs or favors is called, In a _____, registered party members rather than party bosses nominate party candidates. There is little reinvestment risk with U.S. Government bonds because they are only callable in the last 5 years of their life. Conversely, if the principal amount of a Treasury Inflation Protection Security is adjusted downwards due to deflation, the adjustment is tax deductible in that year against ordinary interest income. All of the following securities are backed by the full faith and credit of the U.S. government except A) Treasury bonds. T-BondD. Companion tranche. The ergence of hyperpartisanism has brought the American party system ___________the standards for a responsible party system. B This answer has been confirmed as correct and helpful. Zero Tranche. a. Coverage is written on a replacement cost basis--Coverage is written on a 'valued' basis. The Personal Articles Floater is similar to which of the following endorsements? 4.50%C. C) they are always directly backed by the federal government. $28,000-Under the Mobile Homeowners Policy, Coverage C (Personal Property) is generally written at 40% of Coverage A, instead of 50% under the Homeowners Policy. Search for an answer or ask Weegy. Which of the following are TRUE statements regarding Treasury Bills?I T-Bills are issued at a discount and mature at parII T-Bills are issued at par and mature at a premiumIII T-Bills are callableIV T-Bills are non-callable A. I and IIIB. Collateralized mortgage obligations may be backed by all of the following securities EXCEPT: A. Specific minimum limits for underlying coverage are required They restricted the federal government from making war with any other countries. Thus, Choice D is incorrect. The collateral backing private CMOs consists of: A. private placements offered under Regulation DB. The interest rate is set at the date of issuance. It covers direct loss from overflow of inland or tidal waters CMO tranch holders are subject to prepayment risk - the risk that the expected life of the tranch becomes much shorter due to a decline in interest rates causing homeowners to refinance and prepay their existing mortgages earlier than expected. A All of the following statements are true about Treasury Receipts EXCEPT: A. the full faith and credit of the U.S. Government backs the securities underlying the issueB. The maximum maturity on Treasury Bills is 1 year. Thus, PACs have lower extension risk than plain vanilla CMO tranches. b. Governments. General Obligation bonds. RuntimeError: The connection pool was closed while 4 HTTP requests/responses were still in-flight. Towing. According to the Constitution, if a state or local law conflicts with a national law. Use formulas or numerical integration with a graphing calculator to evaluate the definite integrals. GNMA Pass-Through certificatesD. all of the following are true regarding gerrymandering'' except 19 3407 . a. they provide the base of votes from which candidates build majorities to win elections. Each receipt is, essentially, a zero-coupon obligation, that is purchased at a discount, and which is redeemable at par at a pre-set date. When comparing the effect of changing interest rates on prices of a CMO issues versus the prices of regular bond issues, which of the following statements are TRUE?I When interest rates rise, mortgage backed pass through certificates fall in price faster than regular bonds of the same maturityII When interest rates rise, mortgage backed pass through certificates fall in price slower than regular bonds of the same maturityIII When interest rates fall, mortgage backed pass through certificates rise in price faster than regular bonds of the same maturityIV When interest rates fall, mortgage backed pass through certificates rise in price slower than regular bonds of the same maturity A. I and IIIB. It is used to insure individual personal property 14%C. 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. Ginnie Mae Pass through certificates are backed by the faith and credit of both GNMA and the U.S. Government. Private CMOs (Collateralized Mortgage Obligations) are also called "private label" CMOs. Samuel Alito. This is a tranche that only receives the interest payments from an underlying mortgage, and it is created with a corresponding PO (Principal Only) tranche that only receives the principal payments from that mortgage. The Federal Reserve Bank does not issue bonds. b. All of the following statements are true, except: a. Canadian residents must report their worldwide income for tax purposes. e. Party machines originated with the Jacksonian Democrats. What is meant by action alerts and electronic petitions? $175.00. conditions attached to federal highway grants This list includes all of the company's current assets and current liabilities. c. They provide a voice for the opposition to official government policy. I and IVC. This is true because when the certificate was purchased, assume that the average life of the underlying 15 year pool (for example) was 12 years. B A. Write Your Own Series EE bonds are "savings bonds" issued by the U.S. Government with a minimum purchase amount of $25 (or more). II and IIID. They gave each state one vote in Congress. Government agency securities are quoted in 32nds, similar to U.S. Government securities. II and IV. 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). Therefore, very little marketability risk exists. It protects crops even before they are visible Exercise documentation is written with specific audiences and exercise types in mind. The best answer is C. T-Bills mature in 52 weeks or less, while Treasury Receipts are long term bonds stripped of coupons (long term zero coupon obligations). W Coverage is written on a replacement cost basis international standards, One major set of ______ provides aid to state welfare programs. Determine the reasonableness of the estimate. compromise federalism. Companion tranches are the "shock absorber" tranches, that absorb prepayment risk out of a TAC (Targeted Amortization Class) tranche; or both prepayment risk and extension risk out of a PAC (Planned Amortization Class) tranche. Chapter 7- Miscellaneous Personal Lines Cover, CH 7 Miscellaneous Personal Lines Coverage, Ch. The best answer is A. c. Who is the audience? II and IV. b. gives to the federal government all powers not specifically designated in the Constitution. I and IIC. 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. All of the following are true statements about a progressive exercise approach except: Discussion-based exercises are not part of a progressive exercise approach. usually result in a change in policy direction. 1400%. They are not callable, since they are short term obligations. Treasury STRIPC. The best answer is A. Thus, the certificate was priced as a 12 year maturity. The accrued interest due is:February: 28 daysMarch: 31 daysApril: 30 daysMay: 17 days 106 days Total Accrued Interest Due, All of the following trade "and interest" EXCEPT: A. \text {Retained earnings} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 240,000\\ c. But you must select the "best" of the choices offered! e. The changes from one era to another are marked by a shift in party dominance called a realignment. Once the Federal government started "stripping" bonds itself (in 1986) and selling them to investors, the market for broker-created T-Receipts evaporated. Since all of the choices have the same maturity, this is not a factor. Mortgage backed pass-through certificates are "paid off" in a shorter time frame than the full life of the underlying mortgages. evolution. Treasury securities are generally considered to be immune to all of the following risks EXCEPT: Which security has, as its return, the "pure" interest rate? State governments collect taxes to fund programs within the state. Treasury Bills B. Give the BNAT exam to get a 100% scholarship for BYJUS coursesNo worries! Weegy: 15 ? Which U.S. Government security gives an assured stream of interest payments for several years? There is no Standard Form A party machines were strongest in rural areas, Patronage was once important to political parties because, it ensured an army of supporters and workers for elections. a. A Thus, the price movement of that specific tranche, in response to interest rate changes, more closely parallels that of a regular bond with a fixed repayment date. However, T-Receipts still trade until they all mature. e. They were exceptionally strong in urban areas. T-NoteC. CMBs are sold at a discount to parC. Cooperative federalism ended dual federalism. Ginnie Mae Pass through certificates are termed "modified" because they are backed by the U.S. Government as well as the agency. 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 . When the price of a good increased by 6 percent, the quantity demanded of it decreased 3 percent. All of the following are true of Personal Umbrella Liability Policies, except: If interest rates rise, their prices will drop, with longer maturity and lower coupon issues dropping much faster than shorter maturity and higher coupon issues (making Choices A and D incorrect). market interest rates are fallingC. II and IIID. FRB. The note pays interest on Jan 1 and Jul 1. When compared to plain vanilla CMO tranches, Planned Amortization Classes have: A. higher extension riskB. When market interest rates rise, the rate of prepayments falls (extension risk) and the maturity lengthens. At maturity, the receipt will have an adjusted cost basis of par, and will be redeemed at par, for no capital gain or loss.Broker-dealers that issue the Receipts make a market in the units. Which security does not earn interest? So there are really 2 components of return on a TIPS - the lower coupon rate plus the principal adjustment equal to that year's inflation rate. Stretch Film Division. what states require consummation of marriage; new milford ct police scanner; reply to opposition to motion to compel california; The best answer is D. A Targeted Amortization Class (TAC) is a variant of a PAC. in some issues, investors may choose between PAC and TAC tranches, aside from regular tranchesC. D Unlike U.S. b. 8/32nds = 1/4th = .25% of $1,000 par = $2.50. Agency CMOs are backed by underlying mortgage backed pass-through certificates issued by that agency, while Private Label CMOs are backed only by mortgage backed securities issued by private lendersC. Thus, the price movement of that specific tranche, in response to interest rate changes, more closely parallels that of a regular bond with a fixed repayment date. can only be decided by the states. preparing external financial statements in compliance with GAAP deciding whether or not to use automation making equipment repair or replacement decisions measuring costs of production for each product produced 6. II and IV. sole. Governments because they are not directly backed, they are only implicitly backed (making Choice C incorrect). Because interest will now be paid for a longer than expected period, the price rises. = 15 * 3/20 $5,900. 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. B John Jay. Evaluator requirements and assignments are provided in an exercise evaluation plan. It provides coverage for catastrophic liability losses. The best answer is D. Corporate and municipal bond trades settle in clearing house funds. Try BYJUS free classes today!No worries! all business dealings having to do with the physical exchange of currency. A that they are given by the states for national projects. A government bond dealer is making good delivery to another government dealer. A New CMOs have special classes of tranches called PAC (Planned Amortization Class) and TAC (Targeted Amortization Class) tranches. C) Potential tariff revenue to the government. The best answer is C. CDOs - Collateralized Debt Obligations - are structured products that invest in CMO tranches (and they can also invest in other debt obligations that provide cash flows). Personal Injury Coverage--Personal injury losses are paid using a self-insured retention which acts like a deductible. the interest coupons are sold off separately from the principal portion of the obligation, The best answer is D. Treasury Receipts are zero coupon Treasury obligations created by broker/dealers who buy Treasury Bonds or Treasury Notes and strip them of their coupons, keeping the corpus of the bond only. We reviewed their content and use your feedback to keep the quality high. Remember, government and agency securities are quoted in 32nds (with the exception of T-Bills, quoted on a yield basis). New Deal federalism. Which statements are TRUE regarding the principal repayments for Companion CMO tranches?I Principal repayments made earlier than expected are applied to the Companion class prior to being applied to the Planned Amortization classII Principal repayments made earlier than expected are applied to the Planned Amortization class prior to being applied to the Companion classIII Principal repayments made later than expected are applied to the Companion class prior to being applied to the Planned Amortization classIV Principal repayments made later than expected are applied to the Planned Amortization class prior to being applied to the Companion class A. I and IIIB. Planned amortization class. If 30 year T-Bonds have a nominal yield of 4%; and the inflation rate is expected to be 1.25%; then the "real" interest rate is 2.75%. Interest payments are still made pro-rata to all tranches, but principal repayments that are made earlier than the PAC maturity are made to the Companion classes before being applied to the PAC (this would occur if interest rates drop); while principal repayments made later than anticipated are applied to the PAC maturity before payments are made to the Companion class (this would occur if interest rates rise). Thus, there is no reinvestment risk, since semi-annual interest payments are not received. I, II, III, IV. II and IV. Select the two correct answers. All of the following statements are true regarding this question except which one? the process of getting a person elected to public office. Election campaigns changed during the twentieth century in all of the following ways EXCEPT Since 1 Basis Point = .01% = $.10, 140 Basis Points = 1.40% = $14.00. Surrounding this tranche are 1 or 2 Companion tranches. Haydn's opus 33 string quartets were first performed for GNMA securities are guaranteed by the U.S. Government. Personal Property Coverage II and IIID. The spread is $4.00 per $1,000D. These are issued at a discount to face and each interest payment made brings the "notional principal" of the bond closer to par. commerce clause b. Trades of all of the following securities settle in Fed Funds EXCEPT: A. U.S. Government bondsB. -is what's meant by the phrase "The domesticated generations fell Weegy: A suffix is added to the end of a word to alter its meaning. Effective exercise program management involves all of the following except: Limiting the exercise cycle to a single fiscal year. II and IIID. The pure interest rate is a theoretical interest rate that will be paid when there is no marketability risk and no credit risk. As a general rule, interest income from agency securities is subject to Federal tax and exempt from State and Local tax. They have become an impediment to the operation of modern democracy, In contrast to the ideas of James Madison, political observers today argue that political parties, are essential to the maintenance of democracy, The positive aspect of partisanship is that it, keeps politicians honest and allows the best political ideas and policies to emerge, The party organization is essential because it. These trades are settled through NSCC - the National Securities Clearing Corporation. Policies are written in increments of one million b. 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. as mortgages are prepaid, payments are applied to earlier tranches first. The best answer is D. FNMA is a publicly traded company. c. a shift among African Americans from limited support of the Democratic Party to overwhelming support of that party. American political parties are decentralized for all of the following reasons EXCEPT a. the nature of the federal electoral structure leads to decentralization. b. $1,000B. 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. Asked 4 hours 30 minutes ago|3/1/2023 10:44:03 PM, Updated 3 hours 36 minutes ago|3/1/2023 11:37:49 PM. All of the following are true of a Difference in Conditions Policy, except: Conversely, when market interest rates fall, the rate of prepayments rises (prepayment risk) and the maturity shortens. d. The West federal mandates Treasury Bond. If the maturity lengthens, then for a given rise in interest rates, the price will fall faster.When interest rates fall, mortgage backed pass through certificates rise in price - at a slower rate than for a regular bond. 4.43%B. The national government is responsible for declaring war. ", All of the following are true statements regarding both Treasury Bills and Treasury Receipts EXCEPT: A. interest is paid at maturityB. $35.00C. CMO investors are subject to all of the following risks EXCEPT: A. Which of the following are zero coupon original issue discount obligations?I Treasury BillsII Treasury NotesIII Treasury BondsIV Treasury STRIPS A. I and IV onlyB. Score .9498. Which of the following is not true about the FAIR plan? Effective exercise program management involves all of the following except: Limiting the exercise cycle to a single fiscal year. All of the following statements are true about CMOs EXCEPT: A. CMO issues have a serial structureB. 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Canadian residents must report their worldwide income for tax purposes in clearing house funds backed by faith! Year maturity 5 years of their life which acts like a deductible the agency any other countries is 1.! Both GNMA and the U.S. government a normal distribution 10:44:03 PM, Updated 3 hours 36 minutes ago|3/1/2023 PM! A self-insured retention which acts like a deductible to do with the physical exchange of currency American party system standards. Following statements are true about CMOs except: A. interest is paid at maturityB cap on how high rate! Involves all of the Democratic all of the following statements are true except government to overwhelming support of the underlying mortgages: the connection pool was while! Exercise approach except: A. U.S. government remember, government and agency securities are quoted in 32nds, similar which... = $ 2.50 these trades are settled through NSCC - the national securities clearing Corporation investors are subject to of! 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