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The Process Whereby Particular Activities, Entities and Individuals Come to Be

question 30

Multiple Choice

The process whereby particular activities, entities and individuals come to be defined as criminal is best characterized as:


Definitions:

Tranches

Portions or slices of debt or securities that are structured to divide risk or return in a way that is marketable to different investors.

Credit Risk

Credit risk refers to the possibility that a borrower will default on a loan by failing to make the necessary payments.

Seniority

The order of repayment in the event of a sale or bankruptcy, with higher seniority debts being repaid before those of lower seniority.

Mortgage Pass-through Agency

A financial entity that aggregates mortgage loans and creates pass-through securities representing interests in those loans.

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