(Topic 2) When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk?

The correct answer is B. securitization. In order to increase liquidity, ABC Motor Company bundled its customers' installment payments and resold them to other investors. This is known as:

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Question

(Topic 2)

When using the Internet to access auction markets, companies may use certificate authorities to reduce their exposure to which of the following types of risk?

Options

Afactoring.
Bsecuritization.
Creclassification.
Dsecondary distribution.

How the community answered

(28 responses)

A
4% (1)
B
82% (23)
C
11% (3)
D
4% (1)

Explanation

In order to increase liquidity, ABC Motor Company bundled its customers' installment payments and resold them to other investors. This is known as:

Topics

#certificate authorities#risk reduction#auction markets#internet security

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