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.
Correct Answer:
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Q1: A trust created to specifically buy credit
Q2: The trust structure for managing receivable pools
Q3: To enhance the credit worthiness of an
Q5: Changes needed to occur in legal, _and
Q6: The largest share of specialty lending asset-backed
Q7: Securitization is a form of
A) indirect finance.
B)
Q8: _involves two parties that trade interest payment
Q9: To reduce the possibility of loss in
Q10: A bank that has long-term mortgages funded
Q11: All the following are alternative ways of
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