Which of the following is true of mortgage-backed securities?

A) Mortgage-backed securities assure a flat 15% return.
B) Mortgage-backed securities are guaranteed by the U.S. government.
C) Mortgage-backed securities can only be purchased by investment banks.
D) Mortgage-backed securities represent claims on the cash flows generated by a pool of homeloans.

D) Mortgage-backed securities represent claims on the cash flows generated by a pool of homeloans.