When an FI Sells a Loan Without Recourse, the Credit

question 82

True/False

When an FI sells a loan without recourse, the credit risk of the loan is completely eliminated from the FIs balance sheet.

---

Definitions:

Nonsignificant

An outcome of a statistical test indicating that the evidence is not strong enough to reject the null hypothesis.

Nonsignificant

A statistical term indicating that the results of an analysis do not show evidence to reject the null hypothesis, suggesting that any observed effect could be due to chance.

Insignificant

A term used in statistics to describe a result that fails to provide enough evidence to reject the null hypothesis.

Statistical Concept

A statistical concept encompasses principles and theories related to collecting, analyzing, interpreting, and presenting data in order to make informed decisions or conclusions.