Which of the Following Is NOT a Reason for a FI

question 26

Multiple Choice

Which of the following is NOT a reason for a FI to sell loans with recourse?

• A)To reduce capital requirements.
• B)To avoid credit risk exposure.
• C)To control interest rate risk exposure.
• D)To avoid regulatory scrutiny.
• E)To make it possible to lend large amounts to an individual borrower.

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Definitions:

Primary Sector

The sector of an economy focused on the extraction and collection of natural resources, such as agriculture, mining, and forestry.

Secondary Sector

The portion of the economy that includes industries involved in the processing, transforming, and manufacturing of goods from raw materials.

Tertiary Sector

The segment of the economy that provides services to consumers, including retail, health care, and education.

Charlie Chaplin

An iconic British film actor and filmmaker, known for his contributions to the silent film era and his character "The Tramp."