Securitization Is the Practice Of

question 116

Multiple Choice

Securitization is the practice of:

• A) packaging individual debts into a single uniform asset that can be easily bought and sold.
• B) the government guaranteeing repayment of risky home loans made to individuals with lower credit.
• C) borrowing based on expected future earnings.
• D) backing a security with a riskless asset.

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Definitions:

Income Elasticity of Demand

A metric that gauges the sensitivity of demand for a product to shifts in the income of consumers.

Weekly Income

The total amount of earnings received by an individual or entity over the span of a week.

Bars of Chocolate

Solid blocks of chocolate that can vary in cocoa content, sweetness, and added ingredients, enjoyed as confectionary treats.

Change in Income

The variation, either increase or decrease, in the amount of money earned by individuals or households over time.