________ Is the Process of Turning an Illiquid Asset into a Liquid

question 6

Multiple Choice

________ is the process of turning an illiquid asset into a liquid salable asset.

• A)Liquidity
• B)Securitization
• C)Diversification
• D)Portfolioization

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Definitions:

Economic Benefits

Refers to the advantages or gains, often measured in terms of revenues or savings, that an entity expects to receive as a result of certain actions or investments.

Transaction Costs

Incremental direct costs that are directly attributable to the acquisition, issue, or disposal of a financial asset or financial liability.

Revenue Recognition

An accounting principle that outlines the specific conditions under which revenue is recognized within the financial statements.

Consignment

An arrangement where goods are left in the possession of another party to sell, but the ownership remains with the supplier until sold.