Securitization Can Not Help Financial Intermediaries

question 48

Multiple Choice

Securitization can not help financial intermediaries

• A)diversify their portfolios.
• B)avoid bankruptcy.
• C)attract more investors to buy and hold their securities.
• D)decrease the cost of borrowing.

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Definitions:

Incentives

Are extrinsic or intrinsic rewards or penalties for performing an action or refraining from one, motivating behavior change.

K-12 School Year

The educational period or academic years that include kindergarten through 12th grade in many countries, marking the compulsory stages of schooling.

Resources Are Scarce

The economic principle that the amounts of natural resources, goods, and services available are limited in relation to the desires and needs of people.

Households

The basic economic unit of a society, typically consisting of people living together in the same dwelling.