Multiple Choice
The key benefit of securitization to financial markets is that it ________.
A) allows for the creation of tradable securities with better liquidity for financial claims that would otherwise have remained in the portfolio of financial intermediaries and therefore highly illiquid.
B) does not allow for the creation of tradable securities with better liquidity for financial claims that would otherwise have remained in the portfolio of financial intermediaries and therefore highly illiquid.
C) allows for the creation of tradable securities with better illiquidity for financial claims that would otherwise have remained in the portfolio of financial intermediaries and therefore highly liquid.
D) allows for the creation of tradable securities with better liquidity for market claims that would otherwise have remained out of the portfolio of financial intermediaries and therefore highly illiquid.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Securitization is a vehicle for raising funds
Q15: In the creation of an ABS, which
Q16: The rating agencies analyze the structure to
Q17: Which of the below statements is TRUE?<br>A)
Q18: In a securitization, a variety of third
Q20: Structuring a securitization will depend on the
Q21: The SPV plays a critical role in
Q22: _ do not have a schedule for
Q23: In addition to the administration of the
Q24: The assets that are securitized can have