Which of the Following Is NOT a Reason for FIs

question 85

Multiple Choice

Which of the following is NOT a reason for FIs to sell loans?

• A)Loan diversification.
• B)To reduce required reserves.
• C)To reduce required capital.
• D)To reduce costs of credit risk assessment.
• E)To provide liquidity.

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Definitions:

Percentage of Sales

A financial ratio that compares a company's profitability, expanses, or other financial indicators to its total sales, often expressed as a percentage.

Percentage of Receivables

A method used to estimate the amount of receivables that will not be collected by calculating a percentage based on historical data.

Key Parties

Key parties refer to the main individuals or groups involved in a specific area of business, such as stakeholders in a project or transaction.

Note

A financial document that represents an agreement for one party to pay another by a certain date, often used to denote debt.