Securitization is the process by which a bank sells a loan (which it made previously) to
A)investors.
B)the government.
C)other banks.
D)depositors.

Question

Quizplus · Accepted Answer

Securitization involves banks selling loans to investors, typically through the use of asset-backed securities. This frees up capital for the bank to make additional loans, while spreading the risk of the original loan across multiple investors. Selling loans to the government, other banks, or depositors would not typically be considered securitization.

Securitization Is the Process by Which a Bank Sells a Loan