Instruments That Have Been Securitized Include

question 49

Multiple Choice

Instruments that have been securitized include:

• A) mortgage-backed securities held by government-sponsored enterprises.
• B) car loans and student loans.
• C) credit card debt.
• D) all of the answers given are correct.

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Definitions:

Bankruptcy

A legal status for individuals or entities that cannot repay the debts they owe to creditors, leading to a legal process to resolve unpaid debts.

Assets

Resources owned by individuals or companies expected to provide future benefits, including cash, properties, and investments.

Creditors

Creditors are individuals or entities to whom money is owed by debtors or borrowers.

Primary Objective Test

A rule that states a writing is not needed for enforcement if the promise to pay another party’s debt is made to obtain a gain for the guarantor.