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:

Nonvolatile Storage

A type of storage that retains data even when power is turned off, such as hard drives, flash drives, and SSDs.

Temporary Storage Space

Space in a computing device used to store data that is needed for short periods, often cleared after its purpose is served.

Primary Circuit Board

The main printed circuit board (PCB) in a computer or electronic device, which houses the CPU, memory, and other critical components.

ALU

Arithmetic Logic Unit, a critical component of a computer's CPU that performs arithmetic and logical operations.