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      Question

      Which of the following describes the process in which

      certain types of assets are pooled so that they can be repackaged into interest-bearing securities?
      A Repackaging Correct Answer Incorrect Answer
      B Stripping Correct Answer Incorrect Answer
      C Securitization Correct Answer Incorrect Answer
      D Reconstruction Correct Answer Incorrect Answer
      E Reconstitution 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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