The process of converting financial securities with one set of characteristics into securities with another set of characteristics is called:
A) financial bundling.
B) financial intermediation.
C) financial disintermediation.
D) none of the above.

Question

Quizplus · Accepted Answer

The process described in the question is known as financial intermediation, which involves the transformation of financial assets from one form to another to meet the needs of different investors. Financial bundling generally refers to the grouping of financial assets into a single instrument, while financial disintermediation refers to the reduction in the use of intermediaries in financial transactions. Therefore, option B is the best choice.

The Process of Converting Financial Securities with One Set of Characteristics