Securitization opens up additional funding sources for financial institutions, adding liquidity and diversification.

Name: Securitization opens up additional funding sources for financial institutions, adding liquidity and diversification.
Brand: Quizplus
Rating: 4.7 (38 reviews)

Question

Quizplus · Accepted Answer

Securitization allows financial institutions to convert illiquid assets into securities, which can then be sold to investors. This process provides these institutions with additional funding sources, increases liquidity, and diversifies their funding base.

Securitization Opens Up Additional Funding Sources for Financial Institutions, Adding