Loan Assignments Make Up More Than 90 Percent of the U.S.domestic

question 75

Multiple Choice

Loan assignments make up more than 90 percent of the U.S.domestic loan sale market because

• A)they have lower capital requirements than other types of loan sales.
• B)they are riskier than are other types of loan sales.
• C)monitoring costs are reduced since all rights are transferred upon sale.
• D)regulators prefer these transactions to loan participations.

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Definitions:

Replacing Old

involves updating or substituting older products, methods, or technologies with newer ones to improve efficiency, functionality, or relevance.

Outward Shift

An increase in a country's production possibility frontier, indicating an expansion in its capacity to produce goods and services.

Production Possibilities Curve

An illustrative chart depicting the optimal output possibilities of two different goods or services that an economy can reach with full and efficient use of all available resources.

Tax Policy

The set of laws and regulations governing how taxes are collected, managed, and utilized by a government.