What is the term for the repackaging of loans and other traditional bank-based credit products into securities that can be sold to public investors?

Question

Quizplus · Accepted Answer

Securitization is the term used for the repackaging of loans and other traditional bank-based credit products into securities that can be sold to public investors. Therefore, the correct answer is Option C. Option A (Privatization) refers to the process of transferring ownership of a business or industry from the public sector to the private sector. Option B (Asset Bundling) is a general term for grouping different types of assets into a single investment. Option D (Primary offering) refers to the initial public offering of stocks or bonds by a company. Thus, Options A, B, and D are not relevant to the given question.

What Is the Term for the Repackaging of Loans and Other