Which of the Following Is the More Traditional Form of Off-Balance

question 37

Multiple Choice

Which of the following is the more traditional form of off-balance sheet subsidiary for removing loans from the FIs balance sheet?

• A)Special Purpose Vehicle (SPV)
• B)Asset-Backed Structure (ABS)
• C)Structured Investment Vehicle (SIV)
• D)Collateralized Mortgage Operation (CMO)

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Definitions:

Forced Division

The artificial separation of people or groups by imposed barriers or criteria, often with negative connotations.

Labor

Human effort, either physical or mental, expended in the production of goods and services.

Mechanical Solidarity

A concept developed by Émile Durkheim describing the social cohesion and integration that arises in societies with a simple division of labor, where individuals perform similar tasks.

Organic Solidarity

A concept developed by Émile Durkheim that refers to the social cohesion based upon the dependence individuals have on each other in more advanced societies.