Asset Securitisation Is the Creation of Securities Based on a Pool

question 51

True/False

Asset securitisation is the creation of securities based on a pool of underlying assets; and the value and income payments of the created securities are derived from the underlying assets.

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Definitions:

Service Revenue

Income earned by a company through the provision of services to customers rather than the sale of physical products.

Customer Accounts

Records that maintain the details and transaction history of a customer’s interactions with a business.

Contribution Per Unit

Equals the price less the variable cost per unit. Variable used to determine the break-even point in units.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production volume.