Securitization: Definition, Theory & Process

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is securitization?

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1. What are the steps of the securitization process?

2. Which is a disadvantage of securitization?

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About This Quiz & Worksheet

The worksheet and attached quiz will assess your knowledge of the process and theory of securitization. You'll need to know certain things for the quiz like what securitization is and the steps that make up this process.

Quiz & Worksheet Goals

The quiz and worksheet will guide you to:

  • Understand a disadvantage of securitization
  • Define an illiquid asset
  • Recognize an advantage of securitization for banks and investors

Skills Practiced

Practice the following study skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on securitization theory and process
  • Interpreting information - verify that you can read information regarding an illiquid asset and interpret it correctly
  • Distinguishing differences - compare and contrast topics from the lesson, such as a disadvantage and advantage of securitization

Additional Learning

In order to gain more perspective about this area of study, review the lesson entitled Securitization: Definition, Theory & Process. The lesson will cover the following objectives:

  • Compare and contrast a liquid asset with an illiquid asset
  • Analyze how securitization functions
  • Assess the process and its advantages and disadvantages
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