Asset Securitisation Is Where

question 25

Multiple Choice

Asset securitisation is where:

• A)existing securities are sold to create a pool of funds for investment in income assets
• B)securities are created based on house loans and income payments from the house owners are then paid to the investors
• C)securities are created based on a pool of underlying assets and the value and income payments of the securities are derived from the underlying assets
• D)All of the listed options are correct.

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Definitions:

Selling Price

The amount of money for which an item or service is sold in the market.

Operating Cash Flow

Represents the amount of cash generated by a company's normal business operations.

Interest Expense

The cost incurred by an entity for borrowed funds.

Tax Rate

The proportion of income or profits taken as tax by the government from an individual or company.