As securitization of assets continues to expand, the management of market risk will become more important to FIs.

Question

Quizplus · Accepted Answer

Securitization of assets involves transferring the risk of assets to other investors through the creation of securities. As this practice continues to grow, FIs will need to manage their market risk more effectively in order to mitigate potential losses from changes in market conditions. Therefore, the statement is true.

As Securitization of Assets Continues to Expand, the Management of Market