When illiquid assets are transformed into new asset-backed securities,the process is called:
A) conversion.
B) liquidisation.
C) securitisation.
D) transformation.

Question

Quizplus · Accepted Answer

The process described in the question, where illiquid assets are transformed into new asset-backed securities, is called securitisation. Choice A (conversion) and Choice D (transformation) are both related to the process, but do not specifically refer to the creation of asset-backed securities. Choice B (liquidisation) is not a commonly used term in this context.

When Illiquid Assets Are Transformed into New Asset-Backed Securities,the Process