The Basic Principle of Securitization Is That Bundling a Variety

question 63

True/False

The basic principle of securitization is that bundling a variety of different types of loans into a new asset and selling pieces of that asset to many investors will diversify risk.

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Definitions:

Biodiversity

The variety and variability of life forms within a given ecosystem, biome, or on the entire Earth, important for the stability and resilience of ecosystems.

Agriculture

The practice of cultivating soil, growing crops, and raising livestock for food, fiber, and other products.

Supergroups

Broad classifications in the taxonomy of eukaryotic organisms, grouping together several kingdoms based on genetic similarities and evolutionary relationships.

Kingdom Protista

A diverse grouping in the classification of life that includes mostly unicellular organisms, such as amoebas and algae.