Besides Reducing Credit Risks, an FI Has an Incentive to Sell

question 56

Multiple Choice

Besides reducing credit risks, an FI has an incentive to sell loans it originates for all of the following reasons except to:

• A)geographically diversify
• B)decrease core deposits
• C)lower reserve requirements
• D)lower capital requirements

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Definitions:

Mentally Healthy

A state of well-being in which an individual realizes their own abilities, can cope with normal stresses of life, can work productively, and can contribute to their community.

Popular

Widely liked or appreciated by many people.

Socially Skilled

Possesses the abilities necessary for successful social interactions, including effective communication, empathy, and understanding social cues.

Treated Differently

The action of behaving or acting in a distinct manner towards an individual or group based on perceived differences.