The process of turning an illiquid asset into a liquid saleable asset is called:

Question

Quizplus · Accepted Answer

Securitization is the process of pooling illiquid assets, such as mortgages or car loans, and transforming them into a liquid asset that can be sold in the financial markets, such as asset-backed securities. Swapping refers to exchanging one asset or liability for another, while wrapping and creationism are not related to the process of turning illiquid assets into liquid ones. Therefore, the best choice is C) securitization.

The Process of Turning an Illiquid Asset into a Liquid