26-56 Which of the following is not accomplished by securitization of assets?
A)Increases the liquidity of assets.
B)Provides a new source of funds.
C)Increases the costs of monitoring.
D)Decreases the duration of assets.
E)Decreases the costs of regulation.

Question

Quizplus · Accepted Answer

Securitization of assets typically does not increase the costs of monitoring, as the assets are often sold to investors who perform their own due diligence on the underlying assets. The other options are benefits of securitization.

26-56 Which of the Following Is Not Accomplished by Securitization