The Practice of Creating Marketable Debt Instruments That Are Backed

question 17

Multiple Choice

The practice of creating marketable debt instruments that are backed by otherwise illiquid assets is known as ________.

• A) standardization
• B) homogenization
• C) securitization
• D) adverse selection

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Definitions:

Sound

Waves that propagate through the air or another carrier and can be detected by the ears of people or animals.

Wave Form

A graphical representation of the shape, amplitude, or frequency of a wave, especially as it relates to sound or electromagnetic waves.

Amplitude

The extent of a vibratory movement measured from the position of equilibrium.

Wavelength

The distance between successive crests of a wave, especially in sound or electromagnetic waves, determining its frequency and energy.