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A Which of the following is a benefit of securitization for the originator of the loans? A. If the originator is a bank, it can
A Which of the following is a benefit of securitization for the originator of the loans? A. If the originator is a bank, it can get more bank deposits instead of loans as assets, therefore decreasing credit risk. B. The originator can replace some non interest income by interest income. OC. The originator can replace a nonrealized capital gains on trading securities by a servicing fee to the SPV. D. The originator can free deposits at the central bank as it has removed some credit risk. E. The originator gets rid of the credit risk of the loans, provided it does not buy the ABS that have been issued. Which of the following statements is NOT correct? In Australian law and regulation, {The course coordinator was informed that she accidently put twice the same answer; just ignore as this has no consequence on the allocation of marks} A. the sale of a security for which borrowing arrangements were made before the sell order and the delivery took place also before the sell order is an ordinary sale. B. the sale of a security for which the borrowing arrangement is made after the sell order is a naked short sale. OCthe sale of a security that has been borrowed before the sell order but has not been delivered before the sell order is a covered short sale. o D. the sale of a security for which no borrowing arrangement was involved is a naked short sale. O E. the sale of a security for which the borrowing arrangement is made after the sell order is a naked short sale
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