SIE practice questioneasyCMOs
What is a collateralized mortgage obligation (CMO)?
- AA Treasury STRIP
- BA municipal revenue bond
- CA short-term corporate note
- DA security backed by a pool of mortgage loans✓ Correct answer
Explanation
Why D — A security backed by a pool of mortgage loans
CMOs are mortgage-backed securities with different tranches. The other options do not describe CMOs.
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