Securitization can help in the following: Select one: a. Managing the credit risk b. Managing the...

Securitization can help in the following: Select one:

a. Managing the credit risk

b. Managing the interest rate risks

c. All of these

d. Raising funds

Expert Solution

Securitization can help an entity in order to raise finances because it can help in issuance of self manufactured securities out of various receivables.

Securitization will also be helpful in management of the credit risk because when there will be problems related to default upon that the company can issue various securities in order to generate liquidity and it will also help in management of the interest rate risk.

The correct answer will be option (C) all of the above.

jeff jeffy answered 2 years ago

Which of the following measure is NOT used for managing credit risk a. Netting arrangements b....

Which of the following measure is NOT used for managing credit risk a. Netting arrangements b. Margin and collateral requirements c. Capital gain tax d. Periodic Settlements

Which of the following is / are not true about Securitization: - Select one: a. It...

Which of the following is / are not true about Securitization: - Select one: a. It is process by which receivables are converted into securities b. It is process by which collateral securities are given by borrowers to financial institutions for loan c. It is a process by which default risk is transferred to third parties d. It is a process in which SPV plays the vital role.

Which one of following is not a major method of managing risk? A. Loss identification B....

Which one of following is not a major method of managing risk? A. Loss identification B. Loss financing C. Loss control D. Internal risk reduction

Discuss the importance of a bank’s credit culture in managing credit risk.

Which of the following statements pertaining to Mortality-rate derivation of credit risk is false? Select one:...

Which of the following statements pertaining to Mortality-rate derivation of credit risk is false? Select one: a. Mortality rate estimates are sensitive to the number of issues in each investment grade b. Mortality rate estimates are sensitive to the sample period c. Mortality rate approach is backward looking d. Mortality rate approach is forward looking e. Mortality rates are estimated from actual data on bond and loan defaults Which one of the following statements is true? Select one: a. Duration...

1.Which of the following describes a project managers responsibility? Select one: a. Task Delegation b. Managing...

1.Which of the following describes a project managers responsibility? Select one: a. Task Delegation b. Managing communication between team members c. Getting the project done on time. d. All of the above 2. When people first look at a web page, their eye goes to the: Select one: a. Top right-hand corner b. Bottom left-hand corner c. Bottom right-hand corner d. Top left-hand corner 3. A website’s call to action will work best: Select one: a. At the end of...

Which of the following best measures an asset's risk? Select one: a. Expected return b. The...

Which of the following best measures an asset's risk? Select one: a. Expected return b. The cash return c. The standard deviation d. The probability distribution You are considering buying some stock in Continental Breakfast. Which of the following is an example of nondiversifiable risk? Select one: a. Risk resulting from a news release that there are issues with Continental's production b. Risk resulting from an explosion in a factory owned by Continental c. Risk resulting from a general decline...

Explain the difference between market risk and credit risk. Are techniques for managing market risk appropriate...

Explain the difference between market risk and credit risk. Are techniques for managing market risk appropriate for managing credit risk? EMERGENCY PLEASE HELP

In managing interest rate, credit and liquidity risks, discuss how FIs use securitization to their benefit. In your discussion, list

In managing interest rate, credit and liquidity risks, discuss how FIs use securitization to their benefit. In your discussion, list the benefits and costs of securitization by using an example of a bank securitizing its credit card or mortgage receivables. In performing securitization of these loans, (a) how has the bank changed its interest rate, credit and liquidity risk exposures using credit card asset backed securities as an example and (b) does securization diminish or enhance the banks' intermediation function...

Which one of the following would help reduce the level of risk when working in the...

Which one of the following would help reduce the level of risk when working in the warehouse? a. Training employees in working in cold conditions. b. Increasing the frequency of meetings. c. Regular reviews of the accident log. What corrective action could the two managers consider to reduce the likelihood of more employees going off sick with asthmatic conditions? a. Reduce the length of time employees are exposed to cold conditions by job rotation. b. Increase training and the supervision...

Question