Which of the Following Is NOT a Factor That May

question 33

Multiple Choice

Which of the following is NOT a factor that may tend to increase loan sales in the future?

• A)There is an increased trend to apply credit ratings to loans offered for sale, increasing the attractiveness to secondary market purchasers.
• B)The federal government takeover of Fannie Mae and Freddie Mac means that the loans held by these agencies can never be sold to other entities.
• C)Because of their special credit monitoring skills, FIs have a comparative advantage in making loans to below-investment grade companies and then selling the loan.
• D)The trend toward marked-to-market accounting for assets makes bank loans more like securities so they may be easier to sell.
• E)The risk-based capital requirements of the Bank for International Settlements give banks a strong incentive to sell commercial loans to decrease their amount of risky assets.

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Definitions:

Sexual Minority

Individuals who do not identify as heterosexual, encompassing a range of non-heteronormative sexual orientations and identities.

Sexual Majority

The age at which a person is considered legally competent to give consent to sexual activities.

Transsexual

A term describing a person whose gender identity does not align with their birth-assigned sex, often undergoing medical treatments to transition.

Transvestites

Individuals who dress in clothing traditionally or culturally associated with the opposite sex, often but not exclusively for reasons related to gender identity or expression.