Question

When receivables are bundled and transferred to another organization that issues securities collateralized by the transferred receivables, the arrangement is defined asa. collateralization.b. discounting.c. factoring.d. securitization.

Answer 1

The correct answer to the following question is option D) Securitization

Step-by-step explanation:

The term securitization can be described as a process in which any type of illiquid asset or even a group of asset can be taken and that will be transformed through financial engineering in to an security. So as per the definition the given above question is talking about securitization.