Although a Loan Sale Strategy for an FI May Reduce

question 70

True/False

Although a loan sale strategy for an FI may reduce or eliminate credit risk, the strategy does not affect the FI's liquidity risk.

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Definitions:

Disposable Income

The financial resources that households have at their disposal for spending and saving after income tax deductions.

Savings

Money set aside for future use rather than spending immediately, often in accounts designed for long-term growth or security.

Disposable Income

Post-tax income households possess for saving or spending purposes.

Disposable Income

Disposable income refers to the sum of money that families can use for expenditures and savings once income taxes are deducted.