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Basic Question 7 of 9

The biggest difference between agency and non-agency securities is the ______.

A. credit risk
B. prepayment rates
C. number of tranches
D. average lives

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Craig Baugh

Learning Outcome Statements

describe types and characteristics of residential mortgage-backed securities, including mortgage pass-through securities and collateralized mortgage obligations, and explain the cash flows and risks for each type

CFA® 2024 Level I Curriculum, Volume 4, Module 19.