Securitization Is

question 18

Multiple Choice

Securitization is

• A)the process of combining many different debt instruments like home mortgages into a pool of hundreds of thousands of individual contracts and then selling new financial instruments.
• B)the process of securing loans at the bank.
• C)the process of combining assets and debt into a pool of individual contracts and then selling new financial instruments.
• D)the process that FDIC uses to insure.

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Definitions:

Segment Profit or Loss

The financial performance of a distinct unit within a company, often evaluated to assess its contribution to the overall business.

U.S. GAAP

United States Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in the United States.

Expenses

The costs incurred by a business in the process of earning revenue, such as rent, salaries, and utilities, excluding the cost of goods sold.

Domestic Country

The country in which a company is headquartered or operates primarily.