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.

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Definitions:

Gifts

Voluntary transfers of property or funds to another party without expecting anything in return.

Minor

A person under the legal age of adulthood, which varies by country but is commonly 18 years old.

Intoxicated

The state of being under the influence of alcohol or drugs to a degree that significantly impairs one's physical and cognitive functions.

Repudiates

The action of refusing to accept, acknowledge, or be associated with; in contract law, it refers to the refusal to fulfill contractual obligations.