_________________________ Allow the Banks to Generate Fee Income After They

question 51

Short Answer

_________________________ allow the banks to generate fee income after they have sold a loan.The bank continues to collect interest and principal from the borrowers and passes these collections to the loan buyers.

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Definitions:

Equity Finance

A method of raising capital through the sale of shares in a company, giving shareholders ownership interests.

Bond Owners

Individuals or entities that hold the debt securities issued by corporations or governments, earning interest over time.

Equity Finance

The method of raising capital through the sale of shares in a company, giving shareholders ownership interests.

Bonds

Fixed income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate.