Recall the Application about how the process of securitization in financial markets led to a rise in the rate of home ownership in the U.S. housing market to answer the following question(s).
-Recall the Application. Securitization refers to
A) the federal insurance received by home buyers to protect them from declining home values.
B) the practice of purchasing loans, repackaging them, and selling them to the financial markets.
C) the stocks and bonds used as collateral when one financial institution sells mortgages to another financial institution.
D) the process used by the Federal Reserve to insure home builders against bank failures.

Question

Quizplus · Accepted Answer

Securitization refers to the practice of purchasing loans, repackaging them, and selling them to the financial markets.

Recall the Application About How the Process of Securitization in Financial