A commercial bank operating under an originate-to-distribute model is acting most like
A)an asset transformer.
B)an asset broker.
C)a portfolio lender.
D)an asset accumulator.
E)an investment bank.

Question

Quizplus · Accepted Answer

An originate-to-distribute model involves originating loans and then distributing them to other investors, which is more akin to the role of an asset broker who facilitates transactions between buyers and sellers without necessarily holding onto the assets themselves.

A Commercial Bank Operating Under an Originate-To-Distribute Model Is Acting