1. Which of the following statements does NOT describe the mortgage-backed securities market? (Circle ONE answer). a. MBS allow mortgage originators to make more loans with the same amount of ca

1. Which of the following statements does NOT describe the mortgage-backed securities market? (Circle ONE answer).

a.       MBS allow mortgage originators to make more loans with the same amount of capital.

b.       MBS allow investors in mortgages to diversify their portfolios in terms of geography.

c.       MBS can be structured so that some investors can have lower credit risk than if they invested directly in mortgages.

d.       MBS came into existence in 2006 at the height of the subprime crisis.