Liquidity-generating innovations can increase the liquidity of the market, allow borrowers to draw upon new sources of funds, and permit market participants to circumvent capital constraints imposed by regulations.

Question

Quizplus · Accepted Answer

Liquidity-generating innovations such as securitization and crowdfunding have been shown to increase market liquidity and provide alternative sources of funding for borrowers. These innovations can also allow for more efficient allocation of capital by circumventing regulatory constraints.

Liquidity-Generating Innovations Can Increase the Liquidity of the Market, Allow