New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    What is the primary role of the Special Purpose Vehicle

    (SPV) in debt securitization?
    A To directly lend money to borrowers Correct Answer Incorrect Answer
    B To manage the collection of loan payments from borrowers Correct Answer Incorrect Answer
    C To pool the loans and convert them into marketable securities Correct Answer Incorrect Answer
    D To act as a guarantor for the loans Correct Answer Incorrect Answer

    Solution

    The correct answer is C

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