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The Key Benefit of Securitization to Financial Markets Is That

Question 31

Multiple Choice

The key benefit of securitization to financial markets is that it ________.


A) allows for the creation of tradable securities with better liquidity for financial claims that would otherwise have remained in the portfolio of financial intermediaries and therefore highly illiquid.
B) does not allow for the creation of tradable securities with better liquidity for financial claims that would otherwise have remained in the portfolio of financial intermediaries and therefore highly illiquid.
C) allows for the creation of tradable securities with better illiquidity for financial claims that would otherwise have remained in the portfolio of financial intermediaries and therefore highly liquid.
D) allows for the creation of tradable securities with better liquidity for market claims that would otherwise have remained out of the portfolio of financial intermediaries and therefore highly illiquid.

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