Which of the Following Statements About Securitisation Is Incorrect? Securitisation

question 34

Multiple Choice

Which of the following statements about securitisation is incorrect? Securitisation:

• A)capitalises the future cash flows arising from illiquid assets.
• B)does not have any inherent problems to make it problematic.
• C)is an illegitimate business practice for raising finance.
• D)may also be used to assist in managing risk.

---

Definitions:

Subordinate Words

Words that convey a lesser rank or importance and are typically used to combine with other words to form subordinate clauses.

Predisposed

Inclined or susceptible to a particular condition or outcome, often due to genetic or environmental factors.

Sensitive Period

An early period during the development of an organism when it is particularly responsive to environmental stimulation. Outside of this period, the same environmental events have less impact.

Skill Level

The degree of competence or proficiency an individual has in performing a particular task or activity.