The securitization of finance and the investments created by it,unlike FDI,
A) tend to create few jobs.
B) are invisible to all but a few agents.
C) act on a short-run with unpredictable consequences.
D) are often provided by non-traditional suppliers.
E) all of the above

Question

Quizplus · Accepted Answer

All of the options listed are true regarding the securitization of finance and the investments created by it. The investments created by securitization tend to create few jobs since they do not directly involve setting up businesses and creating employment. They are also invisible to all but a few agents since they are complex financial instruments that are not easily understood by the general public. These investments often act on a short-run with unpredictable consequences, making it difficult to anticipate their effects. In addition, securitization is often provided by non-traditional suppliers i.e. financial institutions like hedge funds and private equity firms rather than traditional banks.

The Securitization of Finance and the Investments Created by It,unlike