In the Creation of an ABS, Which of the Below

question 15

Multiple Choice

In the creation of an ABS, which of the below statements is FALSE?

• A) An installment sale contract is a loan to the buyer of the assets wherein the buyer agrees to repay the originator of the loan over a specified period of time for the amount borrowed plus interest.
• B) The criteria for granting a loan are referred to as underwriting standards.
• C) The company is granting the loan is referred to as the originator of the loan.
• D) The buyers of the assets will set up a legal entity referred to as a special purpose vehicle (SPV).

---

Definitions:

Partial Report

A method used in memory research where subjects are asked to recall only a portion of the information presented to them, demonstrating the capacity of sensory memory.

Capacity

The maximum amount something can contain or the ability to do something.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses and is capable of holding information for a very short period of time.

Fleeting Images

Fleeting images are brief, rapidly passing visual impressions that are not retained long in the memory.