Which of the Following Is True Concerning Loans Sold with Recourse

question 15

Multiple Choice

Which of the following is true concerning loans sold with recourse?

• A)Most loans are sold with recourse.
• B)The buyer cannot put the loan back to the selling FI.
• C)The FI has no explicit liability if the loan eventually goes bad.
• D)The FI that originated the loan retains a contingent credit risk liability.
• E)The loan sale is technically removed from the balance sheet.

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Definitions:

Employee Attitudes

The feelings, beliefs, and values that employees hold towards their work, workplace, and colleagues.

Motivation

The reason or reasons one has for acting or behaving in a particular way; an internal process that activates, guides, and maintains behavior over time.

Lifecycle

refers to the series of stages that an entity, product, or project goes through from its initiation or creation to its termination or conclusion.

Ascendency

The process or state of gaining control, authority, or dominant influence over others or a situation.