Which of the Following Assets Have Not Been Securitized by FIs

question 27

Multiple Choice

Which of the following assets have not been securitized by FIs?

• A)Mortgages.
• B)Credit card receivables.
• C)Auto loans.
• D)Debts of Lesser Developed Countries (LCD debt).
• E)Student loans.

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Definitions:

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Call Option

A financial contract giving the option buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.

Historical Rate

An exchange rate used for converting transactions that have already occurred, based on the rate in effect at the time of the transaction.

Spot Rate

The current market price used for immediate delivery of a currency, commodity, or financial instrument.