FINANCE 306 CERTIFICATION
EVALUATION 2026 PRACTICE SOLUTION
TESTED.
⫸ In a plain vanilla swap. Ans- One participant pays a fixed rate of
interest and the other party pays a variable rate of interest.`
⫸ Advantages of securitization typically all but which one of the
following. Ans- Increase in net interest income
⫸ Which one of the following forms of securitization is usually double
securitization. Ans- Collateralized mortgage obligations
⫸ The FDIC is concerned about issuance of mortgage-backed bonds
(MBBs) because: Ans- The agency is concerned about investors
prepayment risk
⫸ In a 3-class CMO, Class A has the ____ prepayment protection while
with Class C has the____ prepayment function. Ans- least, most
⫸ Brooksly Born was the chair of the___ from 1996-1999. Ans- CFTC
EVALUATION 2026 PRACTICE SOLUTION
TESTED.
⫸ In a plain vanilla swap. Ans- One participant pays a fixed rate of
interest and the other party pays a variable rate of interest.`
⫸ Advantages of securitization typically all but which one of the
following. Ans- Increase in net interest income
⫸ Which one of the following forms of securitization is usually double
securitization. Ans- Collateralized mortgage obligations
⫸ The FDIC is concerned about issuance of mortgage-backed bonds
(MBBs) because: Ans- The agency is concerned about investors
prepayment risk
⫸ In a 3-class CMO, Class A has the ____ prepayment protection while
with Class C has the____ prepayment function. Ans- least, most
⫸ Brooksly Born was the chair of the___ from 1996-1999. Ans- CFTC
