CFA Practice Question

CFA Practice Question

Which of the following is correct?
A. Commercial Paper is long maturity corporate debt.
B. MBS payments are backed by the principal and interest payments of a pool of corporate debt.
C. General Obligation (GO) are backed by all revenues (full faith) of the issuing municipality.
Explanation: Commercial Paper is short maturity corporate debt. MBS payments are backed by the principal and interest payments of a pool of residential mortgage debt.

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