Which of the following describes the waterfall typically used for mortgages pre-crisis? A: A distribution of cash flows to tranches with priority given to tranche with the highest rating B: A distribution of cash flows to tranches in proportion to their outstanding principals C: A distribution of losses to tranches so that tranches bear losses in proportion to their outstanding principals D: None of the above

Which of the following statements are correct?? Synthetic CDOs are typically divided into credit tranches based on the level of credit risk assumed.|A losing streak is a series of successes in gambling or sports.|A fallacy is an idea which few people believe to be true. |Real-estate boom means the property consisting of houses and land.

Which of the following statements are correct? A: A fallacy is an idea which few people believe to be true. B: Synthetic CDOs are typically divided into credit tranches based on the level of credit risk assumed. C: A losing streak is a series of successes in gambling or sports. D: A dealer is someone who buys and sells illegal drugs. E: Real-estate boom means the property consisting of houses and land.