Which of the Following Observations Is NOT Correct

question 79

Multiple Choice

Which of the following observations is NOT correct?

• A)Most loans are sold with recourse.
• B)Loan sales are a primitive substitute for securitization.
• C)Selling of a loan creates a secondary market for loans.
• D)Ownership of the loan is always transferred to the loan purchaser.
• E)Loan sales do not involve the creation of new types of securities.

Grasp the significance of the deposit expansion multiplier in banking.

Recognize various monetary policy tools used by the Federal Reserve.

Assess the impact of changing reserve requirements on the banking system and money supply.

Understand the role of check clearing in the banking system.

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