Which of the Following Scenarios Is an Example of Securitization

question 37

Multiple Choice

Which of the following scenarios is an example of securitization?

• A)A bank issues more common shares to the public.
• B)A multinational manufacturing company sells fixed income securities to a European pension fund in a private deal.
• C)A bank creates fixed income securities using the receivables from mortgages on residential property, and sells them to a fixed income mutual fund.
• D)The Government of Canada sells 25-year Treasury bonds to raise funds for infrastructure.

Understand and apply the accounting for restricted donations and their specific uses within not-for-profit entities.

Comprehend the accounting implications of donor restrictions and how to record them properly.

Learn the five-step progression for recording revenues in health care entities.

Recognize the accounting entries for combinations in the context of acquisitions, focusing on direct and indirect costs.

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Definitions:

Securities And Exchange Commission

A federal agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges in the United States.

Indexed Collection

A systematically organized collection of objects or documents that allows for easy retrieval of information.

EDGAR

An online system used by the U.S. Securities and Exchange Commission for companies to file required reports and information.

Narrowing Online Searches

Refining search engine queries to reduce the number of results and increase the relevance of those results to the user's query.