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:

Psychoanalysis

A therapeutic approach and theory of psychiatry developed by Sigmund Freud that emphasizes unconscious psychological processes and conflicts as the root of mental disorders.

Symbolism

The use of symbols to represent ideas or qualities in literature, art, and other forms of cultural expression.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories of the unconscious mind, mechanisms of repression, and the role of sexual desires.

Id

In Freud’s theory, a term for the most primitive reactions of human personality, consisting of blind striving for immediate biological satisfaction regardless of cost.