In the Early 2000s, Banks Would Package Mortgage-Backed Securities into Pools

question 7

Multiple Choice

In the early 2000s, banks would package mortgage-backed securities into pools of debt and sell them on to investors. This practice is known as ________________.

• A) classification.
• B) mortgage-buying.
• C) assets-making.
• D) securitization.

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Definitions:

Information

Data that has been processed, organized, or presented in a manner that makes it meaningful and useful to the recipient.

Lack Of Response

A situation where there is no reaction or feedback to a stimulus or action.

Critical Evaluation

The systematic process of assessing the merits, faults, value, or significance of something, based on criteria and reasoned arguments.

Majority Rule

A decision-making principle where the option that receives more than half of the votes is selected or agreed upon.