Which of the Following Is NOT True of a Loan

question 3

Multiple Choice

Which of the following is NOT true of a loan that is sold without recourse?

• A)The loan is removed from the FI's balance sheet.
• B)The FI has no explicit liability if the loan eventually goes bad.
• C)The FI that originated the loan bears all the credit risk.
• D)The buyer can put the loan back to the selling FI.
• E)None of the above.

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