25-42 Which of the Following Is NOT True of a Loan

question 84

Multiple Choice

25-42 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)All of the above.

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Definitions:

Motor Unit Recruitment

The process by which different motor units are activated to increase muscle tension and achieve graded contractions.

Abductive Reasoning

A form of logical reasoning that starts with an observation or set of observations then seeks to find the simplest and most likely explanation.

Deduction

The process of reasoning from general principles to specific cases, or the subtraction of expenses from income to determine taxable income.

Induction

The process of introducing a new employee to their job and the organization, involving training and information sessions.