Question

The process in which an intermediary assembles a pool of loans and uses those as a...

The process in which an intermediary assembles a pool of loans and uses those as a basis for issuing securities for sale to investors is called _______.

Bundling

Liquidation

Marketization

Securitization

A model of banking in which banks make loans and then quickly sell them, using the proceeds to make new loans is called ___________.

Originate for solvency

Originate to distribute

Originate to hold

Originate for liquidity

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Answer #1

1. The process in which an intermediary assembles a pool of loans and uses those as a basis for issuing securities for sale to investors is called securitization.

2. A model of banking in which banks make loans and then quickly sell them, using the proceeds to make new loans is called originate to distribute.

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