New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    The process in which certain types of assets are pooled

    so that they can be repackaged into interest-bearing securities is called:
    A Repackaging Correct Answer Incorrect Answer
    B Securitization Correct Answer Incorrect Answer
    C Reconstruction Correct Answer Incorrect Answer
    D Reconstitution Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities is called Securitization. The interest and principal payments from the assets (like loans) are passed through to the investors of the securities.

    Practice Next