Asset securitization is the process of creating a(n):
A)collateralized security.
B)asset-backed security.
C)municipal security.
D)payment security.

Question

Quizplus · Accepted Answer

Asset securitization involves creating asset-backed securities, which are securities that are backed by a pool of assets such as loans, mortgages, or receivables. These securities are then sold to investors, who receive regular payments based on the cash flow generated by the underlying assets. Collateralized securities, municipal securities, and payment securities are not necessarily created through the process of asset securitization.

Asset Securitization Is the Process of Creating A(n)