Covered Bonds

Multiple Choice

Covered bonds:

A) were introduced following the GFC to ease liquidity pressures on the bank's balance sheet
B) are issued by a bank, backed by a pool of assets, which remain on the balance sheet of the issuing bank
C) are issued by a bank, backed by a pool of assets, which are off-balance-sheet items of the issuing bank
D) are issued by the Reserve Bank of Australia to FIs with liquidity problems