Briefly define what is conversion policy mean

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1. Briefly define What is conversion policy mean?

2. Collateralized debt obligations: I. Pay out cash flows from mortgage-backed securities II. Have tranches or "buckets" III. Have the highest-rated tranche pay out first

A. I only B. I and II only C. II and III only D. I, II and III

3. Which of the following statements is true concerning collateralized mortgage obligations (CMOs)?

I. Many CMOs were rated higher than the underlying assets probably warranted

II. Few, if any, CMOs were insured with credit default swaps

III. CMOs, unlike other collateralized debt obligations, were not traded in the "shadow banking" system

A. I only

B. II only

C. III only

D. I and II only

E. II and III only

Reference no: EM131814223

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