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A Bank Is Able to Enhance Its Source of Funding

Question 4

Multiple Choice

A bank is able to enhance its source of funding through securitization because


A) they may be more aggressive in pursuing loans, expanding source of funding.
B) they may become more attractive to depositors and thus attract more depositors.
C) a buyer of asset-backed security is providing funds to the bank who may not have any deposit in the posit in the bank
D) will increase loans to less qualified borrowers because they can be sold later.

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