Securitized assets,as a source of bank funds,are subject to reserve requirements set by the Federal Reserve Board.

Question

Quizplus · Accepted Answer

Securitized assets are not a source of bank funds; instead, they are assets (like loans) that a bank sells to a third party to be packaged into securities. Reserve requirements set by the Federal Reserve Board apply to deposits, not to the proceeds from selling securitized assets.

Securitized Assets,as a Source of Bank Funds,are Subject to Reserve