16)Nominal long term fixed rates are considered to be composed of three elements: real rate of interest,

a)Inflation expectation and risk premium

b)Risk premium and LIBOR

c)Federal funds rate and 10-year treasury rate

d)Swap rate and risk premium

17)A Real Estate Mortgage Investment Conduit (REMIC) is a non-taxpaying entity that owns mortgages and issues bonds.The so-called REMIC Rules that determine what REMICs may or may not do which are overseen and enforced by which US government entity?

a)Securities & Exchange Commission

b)Internal Revenue Service of the Department of the Treasury

c)Federal Reserve Board

d)Consumer Protection Financial Bureau

18) Mezzanine financing is a generic term.It could consist of

a)A junior interest in a senior mortgage

b)The pledge of the borrower's equity in the property as collateral for a loan

c)Either (a) or (b)

d)Neither (a) nor (b)

19) Many mortgage lenders, both balance sheet lenders and originators of loans for securitization, in order to control cash flow, may require tenants to pay rent directly to

a)A lock-box: an account under the control of the Master Servicer

b)The Special Servicer

c)The Trustee

d)A liquidity facility

20)One of the main sources of the Master Servicer's income is

a)Fees earned from the liquidity facility.

b)Refinancing fees.

c)Restructure fees.

d)Investment income from escrow deposits.

21)There are many parties and reasons to blame for the recent (on-going?) "Great Recession".One of them is not the

a)Relaxed underwriting standards in single-family financing.

b)Insufficient regulatory oversight.

c)Shortage of investable capital in the global economy.

d)Excess leverage in hedge funds and off-balance sheet investment vehicles.

22)Following the turbulence of 2008 - 2010, only one of the following remained an independent, publicly-traded financial services company?Which one?

a)Merrill Lynch

b)Washington Mutual Savings Bank

c)Wells Fargo Bank

d)Bear Stearns