The securitisation of 'sub-prime' loans meant they were sold to investors in:
A)mortgage-backed securities
B)mortgage-related securities
C)the share market
D)credit-default swaps
E)the money market.

Question

Quizplus · Accepted Answer

The securitisation of sub-prime loans involved bundling them together and selling them as mortgage-backed securities to investors. This was a major factor in the 2008 financial crisis. The other choices (B, C, D, E) are not directly related to sub-prime loans or their securitisation.

The Securitisation of 'Sub-Prime' Loans Meant They Were Sold to Investors