Which of the Following Is NOT a Factor That May

question 33

Multiple Choice

Which of the following is NOT a factor that may tend to increase loan sales in the future?

• A)There is an increased trend to apply credit ratings to loans offered for sale, increasing the attractiveness to secondary market purchasers.
• B)The federal government takeover of Fannie Mae and Freddie Mac means that the loans held by these agencies can never be sold to other entities.
• C)Because of their special credit monitoring skills, FIs have a comparative advantage in making loans to below-investment grade companies and then selling the loan.
• D)The trend toward marked-to-market accounting for assets makes bank loans more like securities so they may be easier to sell.
• E)The risk-based capital requirements of the Bank for International Settlements give banks a strong incentive to sell commercial loans to decrease their amount of risky assets.

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Definitions:

Kinesthetic Senses

The sense of body position and movement of muscles, tendons, and joints, often referred to as muscle memory or the sense of balance.

Motion Sickness

A condition where there is a discrepancy between visually perceived movement and the vestibular system's sense of movement, causing nausea, dizziness, and other symptoms.

Perceptual Constancies

A phenomenon in psychology where our perception of an object's characteristics (such as size, shape, and color) remains constant despite changes in the sensory input.

Size Constancy

The perceptual understanding that an object's size remains the same despite changes in the distance from which it is viewed.