Securitization of Assets Increases the FI's Capital Requirements

question 50

True/False

Securitization of assets increases the FI's capital requirements.

---

Definitions:

Expropriation

The act of a government taking privately owned property, typically for public use or in the public interest, with or without compensation.

Direct Investments

Investments made directly into a company or project, rather than through securities, stocks, or other indirect means.

Terrorist Activity

Violent acts intended to create fear, perpetrated for a religious, political, or ideological goal, often targeting civilians.

Political Risk

The risk of losing money due to changes in a country's political environment or government policies that would affect investments negatively.