Which of the following is not accomplished by securitization of assets?
A)Increases the liquidity of assets.
B)Provides a new source of funds.
C)Increases the costs of monitoring.
D)Decreases the duration of assets.

Question

Quizplus · Accepted Answer

The securitization of assets can increase liquidity and provide a new source of funds, as well as decrease the duration of assets. However, it does not necessarily increase costs of monitoring. In fact, securitization can potentially decrease monitoring costs by reducing the number of individual assets that need to be monitored.

Which of the Following Is Not Accomplished by Securitization of Assets