DEMO QUESTIONS

Q1:

Financial Statements provide additional valuable information on the loans. Some of the more significant information provided includes EXCEPT:

A: The valuation of the mortgage loan portfolio, including a description of the valuation basis for mortgage loans and income recognition

B: The recorded investment and interest past due on mortgages with interest more than 90 days past due

C: The recorded investment and number of mortgages on which interest has been reduced, and the percent the interest was reduced

D: Disclosures of impaired loans: The total recorded investment in impaired loans at the end of each period

Correct Answer: B

Q2:

Average severities projection method uses various claim count and average cost per claim date on either a paid or insured basis.

A: True

B: False

Correct Answer: A

Q3:

In which of the following, Internal entity experience or information from published sources concerning recent trends in socioeconomic factors affecting claim payments:

A: general inflation rates

B: judicial decisions assessing liability

C: judicial decisions regarding noneconomic damages

D: All of the above

Correct Answer: D

Q4:

The two most common types of dollar rolls are:

A: Fixed-coupon and yield-maintenance agreements

B: Variable-coupon and yield-maintenance agreements

C: Fixed-coupon and Accounting agreements

D: Variable -coupon and Principal agreements

Correct Answer: A

Q5:

What give the issuer the right to retire the bond at certain times, typically if prevailing market interest rates fall below the rate on the bond?

A: Call options

B: Prepayment provisions

C: Variable income statements

D: Investments modules

Correct Answer: A

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