By agreeing to service any assets that are packaged together in the securitization process a bank can:
A) ensure the assets that are packaged and securitized remain in the package and are not sold off.
B) choose the best loans to go through the securitization process.
C) earn added fee income.
D) liquidate any assets it chooses.
E) None of the options is correct.
Correct Answer:
Verified
Q47: Which of the following is a key
Q48: Banks that issue standby letters of credit
Q49: The credit derivatives market has grown many-fold
Q50: Banks are one of the principal buyers
Q51: A standby letter of credit substantially reduces
Q53: Loan-backed securities,which closely resemble traditional bonds,carry various
Q54: The advantage of a credit swap is
Q55: Loan sales are generally viewed as a
Q56: Securitized assets carry a unique form of
Q57: In some instances,banks sell loans and agree
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents