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    Question

    What is the primary function of a Special Purpose

    Vehicle (SPV) in securitization of infrastructure financing?
    A To provide loans directly to infrastructure projects Correct Answer Incorrect Answer
    B To act as the main investor in infrastructure projects Correct Answer Incorrect Answer
    C To isolate financial risk and facilitate the issuance of securities Correct Answer Incorrect Answer
    D To manage day-to-day operations of infrastructure projects Correct Answer Incorrect Answer
    E To regulate environmental compliance Correct Answer Incorrect Answer

    Solution

    A Special Purpose Vehicle (SPV) is created solely for the purpose of securitizing assets, isolating financial risk, and facilitating the issuance of securities backed by those assets.

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