A ________ can result in either the transfer of the credit risk from one bank to another or from a bank to a nonbank entity.

Question

Quizplus · Accepted Answer

The term CRT (credit risk transfer) vehicle is commonly used in finance to refer to various instruments (e.g. credit default swaps, collateralized debt obligations, etc.) that allow for the transfer of credit risk. Therefore, choice D is the correct answer. Choices A, B, and C are not relevant to this question.

A ________ Can Result in Either the Transfer of the Credit