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Basic Question 2 of 5

Select the correct statements.

I. Securitization is the process of aggregating similar instruments, such as loans or mortgages, into a negotiable security.
II. Securitization is a process of creating securities, the payments of which are supported by cash flows generated by of a pool of financial assets.
III. Securitization provides funding to the marketplace, thereby helping to ensure that consumers can obtain necessary credit.

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

explain benefits of securitization for issuers, investors, economies, and financial markets

CFA® 2025 Level I Curriculum, Volume 4, Module 17.