Question

    The process in which certain types of assets are pooled

    so that they can be repackaged into interest-bearing securities is called:
    A Repackaging Correct Answer Incorrect Answer
    B Securitization Correct Answer Incorrect Answer
    C Reconstruction Correct Answer Incorrect Answer
    D Reconstitution Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities is called Securitization. The interest and principal payments from the assets (like loans) are passed through to the investors of the securities.

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