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Basic Question 1 of 3
During the lockout period, the cash flow for a credit card receivable-backed security contains ______ collected from borrowers.
II. fees
III. scheduled principal payments
IV. principal repayments
I. interest
II. fees
III. scheduled principal payments
IV. principal repayments
User Contributed Comments 3
User | Comment |
---|---|
chessdude | Principal is reinvested, that's what means "lockout". |
cuban | Borrowers can pay back principal along with interest. Its the investors who do not receive the principal payments during the lockout period. |
StJohnDale | Agreed |

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Learning Outcome Statements
describe types and characteristics of non-mortgage asset-backed securities, including the cash flows and risks of each type
CFA® 2025 Level I Curriculum, Volume 4, Module 18.