The Creation of a New Security by Combining Otherwise Separate

question 77

Multiple Choice

The creation of a new security by combining otherwise separate loan agreements is called

• A) bundling.
• B) securitization.
• C) a Treasury security.
• D) secondary markets.
• E) secondarization.

---

Definitions:

Cost Curves

Graphical representations used in economics to show the cost of producing a certain number of goods, highlighting how costs change with different levels of output.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Average Cost Curve

A graphical representation that illustrates the cost per unit of output at different levels of production.

Long-run

A period in economics where all factors of production can be varied, and there are no fixed inputs, allowing full adjustment to changes.