25-75 Which of the Following Is NOT a Reason for FIs

question 63

Multiple Choice

25-75 Which of the following is NOT a reason for FIs to sell loans?

• A)Loan diversification.
• B)To reduce required reserves.
• C)To reduce required capital.
• D)To reduce costs of credit risk assessment.
• E)To provide liquidity.

Understand the distinction between total variable cost and total cost, including how to calculate each.

Analyze how production levels affect cost structures, specifically regarding economies and diseconomies of scale.

Interpret cost data to understand the behavior of cost curves, including Average Total Cost (ATC), and Marginal Cost (MC) curves.

Define and calculate average fixed costs for different levels of output.

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Definitions:

Market

A place or mechanism where buyers and sellers of goods and services interact to facilitate exchange, typically resulting in the determination of prices.

Price Elasticity

An indicator of how the demand or supply quantity of a product reacts to price fluctuations.

Raise Profits

Strategies or actions taken by businesses to increase their net earnings or margins.

Two-part Tariff

A pricing strategy that involves charging an initial fee (fixed charge) plus a per-unit price for consumption beyond a certain threshold.