In the United States, Which one of the following four options represents the largest component of securitized debt?

In the United States, Which one of the following four options represents the largest component of securitized debt?
A . Education loans
B . Credit card loans
C . Real estate loans
D . Lines of credit

View Answer

Answer: C

Explanation:

In the United States, the largest component of securitized debt is represented by real estate loans.

Securitization involves pooling various types of debt instruments, including mortgages, auto loans, credit card debt, and others, and selling them as bonds to investors. The largest portion of this market is dominated by mortgage-backed securities (MBS), which are based on real estate loans. These securities were especially prominent leading up to the 2008 financial crisis and continue to represent a significant share of the securitization market.