The process of bundling loans together and buying and selling these bundles in a secondary financial market is called

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Securitization refers to the process of bundling loans together and selling them in the secondary financial market. The loans are typically packaged together as asset-backed securities (ABS) and sold to investors. This allows lenders to free up funds and re-invest in new loans, while investors have the opportunity to earn a return on their investment through the interest payments on the loans in the bundle. Open market operations refer to the buying and selling of government securities by the central bank to manage the money supply and interest rates, while fractional reserve lending and seigniorage relate to the creation of money by banks and governments, respectively.

The Process of Bundling Loans Together and Buying and Selling