A bank is securitizing some car loans. This means that the bank: a. Is minimizing credit risk
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Question:
A bank is securitizing some car loans. This means that the bank:
a. Is minimizing credit risk by greatly improving the collateral, (or "security") it receives for the loan
b. The bank is preparing to obtain a credit default swap for their loans
c. The bank is "packaging" the laons into a single amount, which is then segregated intotranches and sold to investors.
d. none of the above
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