Which of the Following Statements Is True Regarding Special Purpose

Which of the following statements is true regarding Special Purpose Vehicles (SPVs) and structured investment vehicles (SIVs) ?

A) An SPV has no contingent credit risk when it sells asset-backed securities (ABSs) with recourse to investors.
B) An SPV retains the rights to the loans that are used as collateral in an asset-backed security.
C) An SIV potentially has more liquidity risk than the sponsoring FI due to the short-term nature of the liabilities and their reliance on short-term funds.
D) An SPV is allowed to accept deposits while the SIV must rely solely on other borrowings.

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