The process in which bank loans are bundled together and sold on the market as financial assets is called:

Question

Quizplus · Accepted Answer

The process of bundling bank loans and selling them on the market as financial assets is known as securitization. This process involves pooling together loans with similar characteristics, such as interest rates and terms, and then issuing securities that represent partial ownership in the pool of loans. This allows banks to raise funds by selling these securities to investors, while also transferring the risk of default on the underlying loans to the investors who purchase the securities.

The Process in Which Bank Loans Are Bundled Together and Sold