Which of the Following Observations Is Not Correct

question 54

Multiple Choice

Which of the following observations is not correct?

• A)Most loans are sold with recourse.
• B)Loan sales are a primitive substitute for securitisation.
• C)Selling of a loan creates a secondary market for loans.
• D)Ownership of the loan is always transferred to the loan purchaser.

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Definitions:

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a period.

Cost of Goods Sold

Specific expenses directly tied to the production of goods a company markets, such as labor and materials.

Trend Analysis

A method used in financial and business analytics to identify patterns and predict future activity, performance, or behavior by examining historical data.

Income Before

A financial metric indicating a company's profitability before certain costs or expenses have been deducted, such as taxes or interest.