a benefit of securitization is the:
A) reduction in disintermediation.
B) simplification of debt obligations.
C) creation of tradable securities with greater liquidity than the original loans.

Question

Quizplus · Accepted Answer

Securitization creates tradable securities that have greater liquidity than the original loans, which means that investors can easily buy and sell them in financial markets. This can lead to more efficient allocation of capital and greater access to funding for borrowers. However, securitization can also be complex and opaque, which can increase the risk of financial instability if investors do not understand the underlying risks.

A Benefit of Securitization Is The