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Basic Question 4 of 5

It is said that securitization "makes non-tradable assets tradable." This is because securitization ______.

A. lowers risk
B. adds liquidity
C. spreads the ownership of risk

User Contributed Comments 1

User Comment
warnggg Tradable —> liquidity
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

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

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