
Investment Banking and Mortgage-Backed Securities

Interactive Video
•
Business
•
10th - 12th Grade
•
Hard

Ethan Morris
FREE Resource
Read more
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary role of an investment bank when it buys a bunch of mortgages?
To provide insurance for the mortgages
To manage the properties associated with the mortgages
To sell the mortgages directly to investors
To become the lender to homeowners
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the yield promised to investors when shares are sold at $10 each?
5%
12%
8%
10%
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why might some investors find mortgage-backed securities too risky?
They are not rated by any agency
They include sub-prime mortgages
They offer too high a yield
They are only available to hedge funds
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a tranche in the context of mortgage-backed securities?
A type of mortgage
A class of securities with different risk levels
A method of insuring mortgages
A way to sell mortgages directly to homeowners
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In a CDO, which tranche gets paid first?
Equity tranche
Mezzanine tranche
Senior tranche
Junior tranche
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a collateralized debt obligation (CDO)?
A government bond
A direct investment in real estate
A derivative security from mortgages
A type of mortgage
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How can a higher rating be achieved for a senior tranche?
By reducing the number of investors
By including more sub-prime mortgages
By obtaining a credit default swap
By increasing the interest rate
Create a free account and access millions of resources
Similar Resources on Wayground
11 questions
Understanding Mortgage-Backed Securities

Interactive video
•
10th - 12th Grade
8 questions
Goldman Sachs Part I

Interactive video
•
11th Grade - University
11 questions
Understanding Credit and APR

Interactive video
•
9th - 12th Grade
11 questions
Understanding Game Theory and Auctions

Interactive video
•
10th - 12th Grade
11 questions
Understanding Mortgage-Backed Securities

Interactive video
•
10th - 12th Grade
11 questions
Financial Crisis and Risk Management

Interactive video
•
10th - 12th Grade
11 questions
Understanding the Financial Crisis

Interactive video
•
10th - 12th Grade
11 questions
Understanding Quantitative Easing

Interactive video
•
10th Grade - University
Popular Resources on Wayground
11 questions
Hallway & Bathroom Expectations

Quiz
•
6th - 8th Grade
20 questions
PBIS-HGMS

Quiz
•
6th - 8th Grade
10 questions
"LAST STOP ON MARKET STREET" Vocabulary Quiz

Quiz
•
3rd Grade
19 questions
Fractions to Decimals and Decimals to Fractions

Quiz
•
6th Grade
16 questions
Logic and Venn Diagrams

Quiz
•
12th Grade
15 questions
Compare and Order Decimals

Quiz
•
4th - 5th Grade
20 questions
Simplifying Fractions

Quiz
•
6th Grade
20 questions
Multiplication facts 1-12

Quiz
•
2nd - 3rd Grade