Securitized paper:
A) is not part of the money market.
B) is off balance sheet financing.
C) is guaranteed by security firms.
D) is backed by a variety of assets.

Question

Quizplus · Accepted Answer

Securitized paper is backed by a variety of assets such as mortgages, auto loans, credit card receivables, and other assets. It is a form of on-balance sheet financing, as the assets are sold to create the securities. However, it can still be traded on the money market. There is no guarantee by security firms involved in securitized paper.

Securitized Paper