Securitization Is

question 201

Multiple Choice

Securitization is:

• A)the process of slicing up and bundling groups of loans, mortgages, corporate bonds and other financial debts into distinct new securities.
• B)the securing of loans, mortgages, corporate bonds and other financial debts by governments.
• C)a guarantee that loans, mortgages, corporate bonds and other financial debts were secure.
• D)the process of securing loans, mortgages, corporate bonds and other financial debts by insurance companies.

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Definitions:

Consumer Surplus

The discrepancy between what consumers are prepared and capable of spending on a product or service and what they actually end up spending.

Total Consumer Surplus

Total consumer surplus is the difference between what consumers are willing to pay for a good or service versus what they actually pay, representing the net benefit to consumers.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay and the actual price they pay.

Indifferent Buying

A purchasing decision where the consumer has no preference among the options available due to perceived equality.