Between Mateo and Sophia, who has the comparative advantage in car washing, and who has the comparative advantage in lawn mowing? 1050. Government in America: Elections and Updates Edition, George C. Edwards III, Martin P. Wattenberg, Robert L. Lineberry, Christina Dejong, Christopher E. Smith, George F Cole. 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. D Which of the following characteristics of Fannie Mae and Ginnie Mae pass-through certificates are the same?I Certificates are issued in $25,000 denominationsII Certificates are backed by FHA and VA insured mortgagesIII Certificates are backed by the direct guarantee of the U.S. GovernmentIV Certificate holders receive monthly payments of combined interest and principal A. I and III onlyB. A customer buys 5M of 3 3/4% Treasury Bonds at 95-5. Because the interest rate moves with the market, the price stays close to par - as is the case with any variable rate security. a. A. judy norton children; court ordered community service california New Deal federalism. American political parties are decentralized for all of the following reasons EXCEPT a. the nature of the federal electoral structure leads to decentralization. B Do public opinions polls show this party's platform was the one supported by the voters at the time it was written? Freddie Mac is an issuer of mortgage backed pass-through certificatesC. C However, it is subject to purchasing power risk - if market interest rates rise, its value declines (sharply, as a long term zero coupon obligation). Periodic payments; Immediate annuity C. Periodic payments; Deferred annuity D. Lump sum payment; Immediate annuity An investor can buy a variable annuity contract with a lump sum payment. Some flood policies are written in the voluntary property market as a result of a program called ___________. All of the following statements incorrectly refer to the concepts in the Conceptual Framework except a. (7-8, 6-15, 8-1), Get answer to your question and much more, Trades of all of the following securities settle in Fed Funds EXCEPT:A.U.S. D. An annual upward adjustment due to inflation is not taxable in that year; an annual downward adjustment due to deflation is tax deductible in that year. Which of the following is not true about the FAIR plan? The spread is: A. demand for Treasury bills is weakeningD. As a general rule, interest income from agency securities is subject to Federal tax and exempt from State and Local tax. Yields on 3 month Treasury bills have declined to 1.84% from 2.21% at the prior week's Treasury auction. a. Jozeal. 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. the process of getting a person elected to public office. The following are the benefits from international trade EXCEPT: A) increased domestic employment in the export sector. Conversely, when market interest rates fall, the rate of prepayments rises (prepayment risk) and the maturity shortens. This is a tranche that only receives the principal payments from an underlying mortgage, and it is created with a corresponding IO (Interest Only) tranch that only receives the interest payments from that mortgage. c. the credit rating is considered the highest of any agency security. C Prepare the journal entry for the purchase of office supplies on September 30 for $2,500, paying$800 cash and the remainder on account. A semi annuallyC. Thus, the certificate was priced as a 12 year maturity. I and IVC. 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. Reinvestment risk is greater for Ginnie Maes than for U.S. D. Mortgage backed pass-through certificateC. e. the emergence of the South as the most reliably Republican region of the country. Office of the Comptroller of Currency. have previously assembled a winning coalition in their district. 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. All debt obligations are susceptible to purchasing power risk - the risk that inflation raises interest rates, devaluing existing obligations. The nominal interest rate on a TIPS is: A. the same as the rate on an equivalent maturity Treasury BondB. B c. The best answer is A. The focus of the Final Planning Meeting (FPM) includes all of the following except? Coverage is written on a replacement cost basis--Coverage is written on a 'valued' basis. $93.75B. Extended maturity riskD. ", All of the following are true statements regarding both Treasury Bills and Treasury Receipts EXCEPT: A. interest is paid at maturityB. it was unenforceable. This security is a zero coupon obligation which is an original issue discount. It covers such items as paintings, rare manuscripts and antiques A deductible only applies to loss of contents. b. It provides coverage for direct and indirect loss to covered property as the result of flooding The "difference" between the two is the current market expectation for the inflation rate (1.25% in this example). Try BYJUS free classes University Grants Commission (Minimum Standards and Procedures for Award of Ph.D. The best answer is D. A Targeted Amortization Class (TAC) is a variant of a PAC. The statement,Sole proprietors must follow all laws, including federal, state. Because the principal is being paid back at an earlier date, the price rises. 4.70%, The best answer is A. I, II, III, IV. The best answer is C. Treasury Receipts represent an undivided interest in a portfolio of U.S. Government securities held by a trustee. 01(ex+1)3exdx. c. They were the first written plan for the government of the United States. Election campaigns changed during the twentieth century in all of the following ways EXCEPT The note pays interest on Jan 1st and Jul 1st. Mortgage backed pass-through certificates are "paid off" in a shorter time frame than the full life of the underlying mortgages. The spread is $4.00 per $1,000D. It has a 60-day automatic coverage for newly acquired items User: Alcohol in excess of ___ proof Weegy: Buck is losing his civilized characteristics. It protects crops even before they are visible Therefore, both PACs and TACs provide "call protection" against prepayments during period of falling interest rates. These trades are settled through GSCC - the Government Securities Clearing Corporation. All of the following are true statements regarding both Treasury Bills and Treasury Receipts EXCEPT: A. interest is paid at maturityB. as interest payments on the underlying mortgages are received, they are distributed pro-rata to all tranchesC. D program grants The purchaser of a CMO tranch is subject to interest rate risk - if interest rates go higher, then the value of the tranch will decline. The Tenth Amendment states that the powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are. Applying the rules A. 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. Government bondsB.U.S. If interest rates rise, then the average maturity will lengthen, due to a lower prepayment rate than expected. When interest rates rise, the interest rate on the tranche fallsD. Each tranche, in effect, represents a differing expected maturity, hence each tranche has a different level of market risk. The risk of default is minimal since the underlying securities are agency mortgage backed pass-through certificates that are AAA rated. The principal portion of a fixed rate mortgage makes smaller payments in the early years, and larger payments in the later years. I, II, III, IV. age of adaline comet. Identify each of the following places and terms. Treasury Bills and STRIPS are zero coupon original issue discount obligations that do not have a stated interest rate. B 1 business day in federal fundsB. All of the following would be considered examples of derivative products EXCEPT: A. PAC trancheB. How much interest income will the customer receive at each interest payment? If interest rates fall, then the average maturity will shorten, due to a higher prepayment rate than expected. Instructions The current party era is characterized by all of the following EXCEPT Planned amortization class. d. The lack of success of third parties in the United States is the result of election rules. 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). Zero coupon bondB. Social studies; asked by brinao; 26 views; 0 answers; Another one. 140 Basis points equal: A. National Flood Cooperative C Personal Property Coverage--Other coverages include watercraft liability coverage, uninsured boaters, and even towing is usually available. Treasury STRIPS are bonds "stripped" of coupons, meaning all that is left is the principal repayment portion of the bond. The housing bubble that ended badly in 2008 with a market crash was fueled by massive issuance of sub-prime mortgages to unqualified home buyers, that were then packaged into CDOs and sold to unwitting institutional investors who relied on the credit rating assigned by S&P or Moodys. Of the choices listed, Treasury Bonds have the longest maturity. Annual interest on the bonds is 3.5% of $5,000 face amount equals $175.00. However, if prepayment rates slow, the TAC absorbs the available cash flow, and goes in arrears for the balance. e. The United States has rules that often keep third-party candidates out of debates. I and IVC. Question: Question 3 (1 point) All of the following statements, except one, are normative statements. FAIR means Fair Access to Insurance Requirements \text {Accounts receivable} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 217,000\\ b. recruiting candidates to be nominees. A customer sells 5M of the bonds. What is the difference between the compound interest and simple interest on rupees 8000 50% per annum for 2 years? B. Non-government organizations are companies that are not for profit. It acts like a long-term zero coupon bond. When interest rates rise, the price of the tranche fallsC. Search for an answer or ask Weegy. All of the following are true of an Umbrella Liability Policy, except: Property in the care and custody of the insured is covered-Umbrella policies also contain a property in the Care, Custody and Control exclusion. II and IV. c. Treasury Bills are issued in initial 4 week (1 month); 13 week (3 month); 26 week (6 month); and 52 week (12 month) maturities. They are sold in $100 minimums at a discount to par value, just like Treasury Bills. 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. d. the Federal Reserve may have to loosen credit. Planned Amortization ClassB. B) they are considered safer than corporate debt securities. A D It covers direct loss from mudslides caused by the accumulation of water c. a shift among African Americans from limited support of the Democratic Party to overwhelming support of that party. The maximum maturity on Treasury Bills is 1 year. If not, solve the system by the method of reduction. Interest rate risk is more severe for longer maturities than for shorter maturities. B. Plain vanilla CMO tranches are subject to both risks, while zero-tranches are like "wild cards" - whatever is left over is what you get! Default risk and credit risk are the same - U.S. Government securities are considered to have virtually no default risk. d. b. Treasury Bills B. Ginnie Mae is a government (not a private) company and cannot be spun off because of the guarantee of the U.S. Government. the maturity of the security is likely to extend and principal will be returned to the customer at a slower rate than anticipated, D. he will be able to sell the mortgage backed securities at a large profit because of their long maturity. . b. I, II, III, IV. Treasury Bonds accrue interest on an actual day month/actual day year basis. the guarantee of the U.S. GovernmentC. This security is considered to be free of credit risk; free of market risk; and is also free of interest rate risk. Treasury STRIPS are not a derivative, because the value of the coupons "stripped" from the Treasury bonds is a direct correlation to the interest payments received from the underlying U.S. Government securities. II, III, IVD. Treasury BillD. c. American party organizations are decentralized. Payment of interest and principal on Ginnie Mae pass through certificates is:I backed by the faith and credit of GNMAII not backed by the faith and credit of GNMAIII backed by the faith and credit of the U.S. GovernmentIV not backed by the faith and credit of the U.S. Government A. I and IIIB. a stalemate that results when rival parties stubbornly refuse to budge from their positions to achieve a compromise in the public interest. Lump sum payment; Deferred annuity B. If the coefficient matrix of the system is invertible, solve the system by using the inverse. CDO tranches are:I all rated AAAII rated based on the credit quality of the underlying mortgagesIII can be backed by sub-prime mortgagesIV cannot be backed by sub-prime mortgages A. I and IIIB. If prepayments increase, they are made to the Companion class first. 10 year Double Barreled BondsB. Thus, there is no reinvestment risk, since semi-annual interest payments are not received. B The interest portion of a fixed rate mortgage makes larger payments in the early years, and smaller payments in the later years. Because a PAC is relieved of both of these risks, it has the lowest risk and trades at the lowest yield. All of the following are purchase and payout options for variable annuity contracts EXCEPT: A. Sallie Mae issues debentures, and uses the funds to make student loans (Sallie Mae stands for Student Loan Marketing Association). The best answer is D. All of the statements are true about CMOs. Wahab was one of three The "modification" of Ginnie Mae modified pass through certificates is: A. the pooling of mortgages of similar maturities to back the securityB. account on behalf of W Financial Group, LLC, All of the following statements about the national government are TRUE except: The __________ disburses funds to state and local governments for participation in national programs. exempt from Federal income tax, but subject to State and Local taxC. O sole proprietorships must obey employee and consumer regulations. A deductible only applies to loss of contents--A separate deductible applies to contents and building losses. a. The focus of budgeting is planning.e. II and IV. 52 weeks. Coverage is on a named peril basis--Coverage under a DIC policy is open peril with exclusions, not named peril. I, II, III, IV. FNMA certificates are not directly backed by the U.S. Government. This is the face value of the bond, and any interest earned is added to the bond's value. All of the following statements about state constitutions are TRUE except: A. Write Your Own--WYO companies may structure its flood business according to guidelines and regulations of the NFIP and within its existing personal lines business to be sold by producers. Essentially, Treasury Receipts are "zero coupon" Treasury bonds or Treasury notes that pay interest earned at maturity. $87.50D. D STRIPS are zero-coupon Treasury obligations - these have the highest level of purchasing power risk. The debt securities that are issued by Fannie Mae trade over-the-counter, hence they are negotiable (that is, tradable). $10,000C. U.S. Government bondC. Which government system is the most popular, both historically and today? Since each tranche represents a differing maturity, the yield on each will differ. There is no deductible User: She worked really hard on the project. All of the following statements about cytochromes of the electron transport chain are true EXCEPT They are heme proteins ; They serve as electron carriers in oxidation-reduction reactions ; They all have the same energy when reduced ; When reduced, iron is in the +2 state ; When oxidized, iron is in the +3 state t<2.060ort>2.060,wheredf=25. Rating. 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. They are sold in $100 minimums at a discount to par value, just like Treasury Bills. The price movements of IOs are counterintuitive! d. In the above-mentioned options, all the statements are correct, except option 2. semi-annuallyD. The best answer is B. Series EE BondsD. quarterlyC. reduction of burden. c. the media began playing a more important role. $4,914.05C. The rank-and-file members who carry out the party's electioneering efforts are _______, Loyalty to a political cause or party is known as ____, A(n) _______ is a substantial and long-term shift in party allegiance by individuals and groups, usually resulting in a change in policy direction, The ability of party leaders to bring party members in the legislature into line with the party program is known as ______, Candidates for elective office in the United States are most often chosen in _____, political science ch 12: political parties, Christina Dejong, Christopher E. Smith, George F Cole. All of the following are true statements about operations-based exercises except: Weegy: All of the following are true statements about operations-based exercises except: They use in-depth discussion as a means to problem solve. The best answer is A. From the basis quote, the dollar price is computed. The best answer is A. 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C Personal property coverage -- Other coverages include watercraft liability coverage, uninsured boaters, Municipal! All debt obligations are susceptible to purchasing power risk default is minimal since underlying. The comparative advantage in car washing, and smaller payments in the Framework... And larger payments in the early years, and goes in arrears for Government. Includes all of the following are the benefits from international trade EXCEPT a! Considered safer than corporate debt securities out of debates b the interest of! Of prepayments rises ( prepayment risk ) and the maturity shortens as,. All debt obligations are susceptible to purchasing power risk - the Government held. The choices listed, Treasury Receipts EXCEPT: A. demand for Treasury Bills prior week Treasury... Full life of the Federal electoral structure leads to decentralization month Treasury Bills is 1.. Has the comparative advantage in lawn mowing D. mortgage backed pass-through certificates are. 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