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Securitization Is the Process by Which Financial Institutions

Question 30

Multiple Choice

Securitization is the process by which financial institutions


A) pool together a group of loans and then issue securities backed by the pool.
B) determine the composition of their assets that will yield the optimal amount of security for their financial health.
C) borrow funds from the Federal Reserve and then use those funds to make loans to their customers.
D) determine sub-prime mortgage rates.

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