Securitization of loans

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Reference no: EM133109595

For each of the statements below, assess whether the statement is TRUE (always correct), FALSE (always wrong) or UNCLEAR (meaning correct under some circumstances, wrong under other circumstances to define). In 4 or 5 sentences, provide an explanation / illustration of why this is the case.

a. Securitization of loans replaces loans with money in the originator's assets.

b. Naked short sales were allowed through several exemptions in the Australian pre- 2008 legislation whereas in the new legislation naked short sales are allowed through one exemption.

c. A bank could create Bitcoins if it was allowed to make loans in Bitcoins.

Reference no: EM133109595

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