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.
Correct Answer:
Verified
Q26: Which of the below statements is FALSE?
A)
Q27: Uncommon forms of internal credit enhancement are
Q28: By making financial assets tradable in this
Q29: Securitizations require credit enhancement and the mechanism
Q30: Which of the below statements is TRUE?
A)
Q32: The collateral in a securitization can be
Q33: The SPV is the issuer of the
Q34: In addition to the administration of the
Q35: The underlying principle of _ is that
Q36: The competitive transition charge (CTC) is effectively
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