CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A reserve account is used in asset-backed securities for ______.
A. liquidity
B. credit enhancement
C. holding temporary excess funds
Explanation: A reserve account is used to make payments in case of default or missed payments by the borrowers.

User Contributed Comments 1

User Comment
danlan2 A reserve account is used for internal credit enhancement.
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