The process of transforming otherwise illiquid financial assets into marketable capital market...

1) The process of transforming otherwise illiquid financial assets into marketable capital market instruments is know as

A) securitization.

B) internationalization.

C) arbitrage.

D) program trading.

2) ________ is creating a marketable capital market instrument by bundling a portfolio of mortgage or auto loans.

A) diversification.

B) arbitrage.

C) computerization.

D) securitization.

3) The driving force behind the securitization of mortgages and automobile loans has been

A) the rising regulatory constraints on substitute financial instruments.

B) the desire of mortgage and auto lenders to exit this field of lending.

C) the improvement in computer technology.

D) the relaxation of regulatory restrictions on credit card operations.