Which of the below statements is FALSE?
A) Securitization is a vehicle for raising funds directly in the public market without the need for a financial intermediary.
B) Securitization reduces risk via diversification.
C) The costs of contracting and information processing are provided in asset securitization.
D) The concerns with the financial disintermediating impact of securitization are that more assets will be held in the portfolio of banks.
Correct Answer:
Verified
Q21: Few securitization transactions that employ internal credit
Q22: Securitization is a vehicle for raising funds
Q23: In a securitization, a variety of third
Q24: If there are a few borrowers in
Q25: External credit enhancements come in more complicated
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)
Q31: The key benefit of securitization to financial
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