Securitization Is the Process by Which a Bank Sells a Loan

question 56

Multiple Choice

Securitization is the process by which a bank sells a loan (which it made previously) to

• A)investors.
• B)the government.
• C)other banks.
• D)depositors.

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Definitions:

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell their invention for a certain period, preventing others from copying.

Long-Run Supply Curve

A graphical representation that shows how the quantity of goods supplied by an industry changes over time in response to changes in price, assuming that all inputs can be varied.

Increasing-Cost Industry

An industry in which the costs of production increase as the industry's output expands, typically due to resource limitations or increased demand for inputs.