Which of the Following Scenarios Is an Example of Securitization

question 37

Multiple Choice

Which of the following scenarios is an example of securitization?

• A)A bank issues more common shares to the public.
• B)A multinational manufacturing company sells fixed income securities to a European pension fund in a private deal.
• C)A bank creates fixed income securities using the receivables from mortgages on residential property, and sells them to a fixed income mutual fund.
• D)The Government of Canada sells 25-year Treasury bonds to raise funds for infrastructure.

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Definitions:

Intermittent Reinforcement

A conditioning schedule in which a reward or punishment is not administered every time the desired response is performed, leading to more resistant behavior change.

Continuous Reinforcement

A method of learning where a behavior is reinforced every time it occurs, leading to faster acquisition of the behavior.

Intermittent Reinforcement

A conditioning schedule in which a reward or punishment (reinforcement) is not administered every time the desired response is performed, leading to more resistant behavioral patterns.

Partial Reinforcement

A conditioning schedule where only some responses are reinforced, leading to more resistant behavior to extinction.