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A bank moves a pool of loans to a bankruptcy remote SPV for immediate cash. This is:
ARestructuring
BStress testing
CProvisioning
DSecuritization
Answer & Solution
Correct answer: D. Securitization
1. Assets leave the originator's balance sheet.
2. They go to a special purpose vehicle for cash.
3. That process is securitization.
_Source: Reserve Bank of India, Glossary (rbi.org.in)._
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