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Commerce · Q887

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 887

Q887

Which of the following are probable benefits of securitization, in which assets are transformed into security? 1. For the owner of the asset, it improves the liquidity position as the future receivables are replaced by cash. 2. It improves the channelization of money in the economy.

A.
1 only
B.
2 only
C.
Both 1 and 2
Answer
D.
Neither 1 nor 2

Answer: Option C

Solution

Answer: Option C
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