Explain Securitisation Using Mortgage Loans as an Example

question 33

Essay

Explain securitisation using mortgage loans as an example.

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Definitions:

U.S. Tax System

A structured framework by which the federal, state, and local governments in the United States collect taxes from individuals and businesses based on income, sales, property, and other financial activities.

Primary Federal Tax System

The principal tax collection mechanism of the federal government, including income, payroll, and corporate taxes.

Primary State

The initial or foundational level of government authority in a country, often responsible for key areas such as law enforcement and taxation.

Progressive Tax

A rephrased definition: A taxation system where the tax rate escalates as the taxable income or base increases, ensuring those with greater financial resources bear a larger portion of the tax burden.