For Financial Institutions,securitization Is the Means by Which Regulatory Capital

question 12

True/False

For financial institutions,securitization is the means by which regulatory capital arbitrage lowers capital requirements.

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Definitions:

Legal State

The condition of being in accordance with the law or recognized as such by legal authorities.

Sabbath Law

A law that prohibits the performance of certain activities on Sundays.

Contract Rescinded

The act of legally declaring a contract null and void, as if it never existed, usually due to misinformation, fraud, or mutual mistake.

Sabbath Day

A day set aside for rest and worship according to Jewish, Christian, and some other religions’ traditions, typically observed from sunset on Friday to sunset on Saturday in Judaism and on Sunday in Christianity.