One Difference Between a Special Purpose Vehicle (SPV) and a Structured

question 85

Multiple Choice

One difference between a special purpose vehicle (SPV) and a structured investment vehicle (SIV) is

• A)there is no difference; these are just two different names for the same type of subsidiary.
• B)the SPV has stockholders that share in the profits; the SIV only has debt.
• C)the SIV ceases to exist when the loans in its portfolio cease to exist; the SPV outlives its loan portfolio.
• D)the SPV is allowed to accept deposits while the SIV must rely solely on other borrowings.
• E)the SIV raises funds first and then acquires loans from the sponsoring FI; the SPV receives the loans first and creates an asset-backed security which it sells and transfers the funds back to the sponsoring FI.

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Definitions:

Weak Current

A water or air flow that moves sluggishly and with less force compared to stronger currents.

Steep Slopes

Areas of land that have a sharp incline, often associated with mountains or hillsides.

Sedimentary Clasts

Fragments or grains of rocks or minerals embedded within a sedimentary rock.

Loose Fragments

Small, unconsolidated pieces of rock or minerals found on the ground surface, which have been detached from larger formations.