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In the Creation of an ABS, Which of the Below

Question 6

Multiple Choice

In the creation of an ABS, which of the below statements is FALSE?


A) An installment sale contract is a loan to the buyer of the assets wherein the buyer agrees to repay the originator of the loan over a specified period of time for the amount borrowed plus interest.
B) The criteria for granting a loan are referred to as underwriting standards.
C) The company is granting the loan is referred to as the originator of the loan.
D) The buyers of the assets will set up a legal entity referred to as a special purpose vehicle (SPV) .

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