Securitization Is the Process by Which Financial Institutions

question 10

Multiple Choice

Securitization is the process by which financial institutions

• A)pool together a group of loans and then issue securities backed by the pool.
• B)determine the composition of their assets that will yield the optimal amount of security for their financial health.
• C)borrow funds from the Federal Reserve and then use those funds to make loans to their customers.
• D)determine sub-prime mortgage rates.

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