A Process Whereby a Bank Can Sell a Parcel of Its

question 83

Multiple Choice

A process whereby a bank can sell a parcel of its existing home loans to investors in the financial markets is best described as:

• A)bill acceptance
• B)mortgage origination
• C)securitisation
• D)indirect financing
• E)None of these.

---

Definitions:

Permanent Differences

Differences between taxable income and accounting income that arise due to items recognized in one manner for accounting purposes and in another manner for tax purposes, and they do not reverse over time.

Permanent Differences

Differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting the effective tax rate.

Temporary Differences

Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, leading to deferred tax assets or liabilities.

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.