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.

---

Definitions:

Grandparents

The parents of one's parents, often playing significant roles in family structure, support, and intergenerational relationships.

Stressed

Experiencing mental or emotional strain or tension resulting from adverse or demanding circumstances.

Healthy

describes a state of complete physical, mental, and social well-being, not merely the absence of illness or infirmity.

School-age Children

A developmental stage referring to children who are attending primary or elementary school, typically ranging from 5 to 12 years old.