Which of the Following Best Describes the Benefits to the Borrower

question 54

Multiple Choice

Which of the following best describes the benefits to the borrower of selling asset backed securities?

• A) Due to the portfolio effect,the borrower can package up low quality accounts receivable and sell them for a premium price.
• B) The borrower trades current cash flows for future cash flows.
• C) The asset-backed security may carry a better credit rating.
• D) The borrower has collateral tied to the asset backed security.

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Definitions:

Execute

To run a program or command, causing the computer to perform specific instructions or operations.

Single Step

A debugging process that executes one line of code at a time, allowing developers to inspect and analyze the execution flow in detail.

Expressions

Combinations of symbols and operators that the software interprets and computes to produce another value.

Macro Action

An automated sequence of instructions executed to perform a specific task in software applications.