Which of the following is a debt security whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans?
A) asset-backed securities
B) credit quality securities
C) debentures
D) junk bonds

Question

Quizplus · Accepted Answer

Asset-backed securities are financial instruments whose income payments and hence value are derived from and backed by a specified pool of underlying assets, such as loans (credit card debt, auto loans, home equity loans).

Which of the Following Is a Debt Security Whose Payments