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      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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