Which Is of the Statements Below Is True

question 37

Multiple Choice

Which is of the statements below is true?

• A)An FI will earn fees when arranging a large loan, even if it sells part or all of the loan later.
• B)Like reserve requirements, the capital adequacy requirements imposed on FIs are a burden as long as required capital exceeds the amount the FI believes to be privately beneficial.
• C)In addition to credit risk and interest rate risk, holding loans on the balance sheet can increase the overall illiquidity of an FI's assets.
• D)All of the listed options are correct.

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Definitions:

T-Account Close

A close that is based on the process that people use when they make a decision by weighing the pros against the cons.

Competitor's Product

A product that is offered by one company that serves as an alternative or rival to another company's product in the market.

Standing-Room-Only Close

A close whereby a salesperson suggests that if a prospect does not act now he or she may not be able to buy in the future, thus motivating the prospect to act immediately.

Summary of Benefits Close

A sales strategy where the salesperson summarizes the key benefits of the product or service, emphasizing its value to encourage purchase.