Customer Loans Are Classified on a DI's Balance Sheet as

question 52

Multiple Choice

Customer loans are classified on a DI's balance sheet as

• A)assets, because the DI's major asset is its client base.
• B)liabilities, because the customer may default on the loan.
• C)assets, because the DI earns servicing fees on the loan.
• D)liabilities, because the DI must transfer funds to the borrower at the initiation of the loan.
• E)assets, because DIs originate and monitor loan portfolios.

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Definitions:

Process Range Chart

A control chart that monitors the dispersion or variability of a process, helping to ensure a process is stable and predictable over time.

Variation

Variation refers to the degree of change or difference in a condition or process, often analyzed to improve quality and performance in manufacturing.

Statistical Process Control

A method of quality control which uses statistical methods to monitor and control a process.