The Packaging of Loans into Asset Pools and Then Selling

question 117

Multiple Choice

The packaging of loans into asset pools and then selling portions of the pool to investors is known as

• A)security creation.
• B)securitization.
• C)loan transfer.
• D)loan collateralization.
• E)mutual fund management.

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Definitions:

Empirical Support

Refers to evidence gathered through observation, experience, or experiment, rather than theory, supporting a hypothesis or theory.

Scientific Management Theory

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Bureaucratic Organization

A structure characterized by strict procedures, a hierarchy of authority, and a clear division of labor.

Individual Productivity

The rate or efficiency at which an individual can complete tasks and achieve goals.