Banks and Other FIs Sell Loans Because of All of the Following

question 68

Multiple Choice

Banks and other FIs sell loans because of all of the following EXCEPT

• A)loan diversification benefits.
• B)reduction in reserve requirements.
• C)lowering of capital costs.
• D)reduction of liquid assets of the institution.
• E)increase in fee income through brokerage functions.

---

Definitions:

External Forces

Influences or pressures from outside a system, organization, or individual that can affect behavior, operations, or development.

Constraining Forces

Factors or conditions that limit, restrict, or regulate actions, developments, or behaviors in any given context.

Criminal Proceeding

A legal process in a court of law to determine if someone accused of a crime is guilty or not.

Testify

To make a formal statement of fact, especially under oath in a court of law.