During the late 1980s and into the early 1990s, banks sold blocks of loans to raise capital.

Question

Quizplus · Accepted Answer

During the late 1980s and into the early 1990s, banks indeed sold blocks of loans, a practice known as securitization, to raise capital. This process involves pooling various types of contractual debt such as mortgages, car loans, or credit card debt obligations and selling their related cash flows to third-party investors as securities, which can be bonds, pass-through securities, or collateralized mortgage obligations.

During the Late 1980s and into the Early 1990s, Banks