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Securitization of Bank Loans

Question 109

Multiple Choice

Securitization of bank loans:


A) Means that there is a security or other collateral backing the loans
B) Protects banks from default risk by providing loan insurance
C) Permits banks to sell bundles of loans in the financial markets to raise capital
D) Protects depositors from poor lending decisions by their banks
E) None of the above

Correct Answer:

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