Which of the Following Is NOT a Reason for an FI

question 63

Multiple Choice

Which of the following is NOT a reason for an FI to sell loans with recourse?

• A)To reduce capital requirements.
• B)To avoid credit risk exposure.
• C)To control interest rate risk exposure.
• D)To avoid regulatory scrutiny.

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Definitions:

Birds

Warm-blooded vertebrates characterized by feathers, beaks without teeth, laying of hard-shelled eggs, a high metabolic rate, and a four-chambered heart.

Reptiles

A class of cold-blooded vertebrates that include snakes, lizards, turtles, crocodilians, and various extinct groups, characterized by breathing air, laying shelled eggs, and having a skin covered with scales or scutes.

Urea

An organic compound and waste product produced in the liver, resulting from the metabolism of proteins, excreted in the urine.

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, characterized by their ability to live both in water and on land.