Securitization

question 99

Multiple Choice

Securitization:

• A) turns many loans into a single larger asset.
• B) is an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest.
• C) is a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.
• D) turns many loans into a risk-free secure asset.

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Definitions:

ERISA

The Employee Retirement Income Security Act, a federal law that sets minimum standards for pension plans in private industry to protect individuals in these plans.

Pension Fund Managers

Professionals responsible for overseeing the investment and allocation of funds collected in a pension scheme to ensure that there are enough resources to pay pension benefits in the future.

Employee Horseplay

Unprofessional and risky behavior by employees during work hours, potentially leading to accidents or injuries.

Employer Defenses

Legal justifications used by employers to defend against claims brought by employees.