What is the difference between a mortgage and a mortgage-backed security ?
a. no interest is paid on mortgage-backed securities, whereas interest and principal payments are paid on mortgages.
b. mortgages are provided to households or firms, whereas mortgage-backed securities are provided mainly to financial institutions.
c. mortgages are loans, whereas mortgage-backed securities are bond-like debt instruments.
d. mortgages are usually used to create a portfolio, whereas mortgage-backed securities are held separately?
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