Bundling mortgages into a financial security sold to investors is call…

Question

Bundling mortgages into a financial security sold to investors is called:

Accepted Answer

D. Securitization

1. Investors receive returns from mortgage payments.
2. This is securitization.
3. It spreads local risk but weakens loan scrutiny.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._

Answer

Diversification

Answer

Liquidation

Answer

Amortization

Bundling mortgages into a financial security sold to investors is called:

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