In the Creation of an ABS, Which of the Below

question 58

Multiple Choice

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

• A) There is a type of securitization transaction involving a conduit that buys the loans and securitizes them.
• B) The originator of the loan is the seller of the loan.
• C) The originator of the loan is always the issuer of the loan.
• D) The SPV in a securitization is referred to as the "issuer" or "trust" in the prospectus.

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Definitions:

Applied Research

A form of systematic inquiry involving the practical application of science. It accesses and uses some part of the research communities' (the academia's) accumulated theories, knowledge, methods, and techniques, for a specific, often state-, business-, or client-driven purpose.

Darwin's Theory

The scientific theory of biological evolution that explains how species evolve over time through natural selection.

Functionalists

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