Mortgage-backed securities are __________.

Bundles of subprime mortgages traded like stocks

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Low-interest loans offered to people with troubled credit histories

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Another name for adjustable-rate mortgages

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Recession-proof investments

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Stable assets

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Solution

The correct option is B Bundles of subprime mortgages traded like stocks
Mortgage-backed securities are Bundles of subprime mortgages traded like stocks.

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Similar questions

List I	List II
A. Mitigation	$1$ . Reduction in the severity of some penalty
B. Moot	$2$ . A mock trial
C. Mortgage	$3$ . An interest in the property created as a form of security for a loan

The house kept with the bank as mortgage acts as a security for the loan. Hence, it is ___________ to the bank

Banks took a lot of the mortgages, grouped them together and create securities. What are these securities called?

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