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

    Question

    In a securitization, the issuer of asset-backed

    securities is best describes as the:
    A Special Purpose Vehicle Correct Answer Incorrect Answer
    B Seller Correct Answer Incorrect Answer
    C Servicer Correct Answer Incorrect Answer
    D Banker Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Asset-backed securities are issued by a special purpose vehicle or a special purpose entity that is created for that specific purpose.

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