Which of the Following Is Not a Factor That May

question 5

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)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.
• C)The trend towards marked-to-market accounting for assets makes bank loans more like securities so they may be easier to sell.
• D)The risk-based capital requirements of the Bank for International Settlements give banks a strong incentive to sell housing loans to decrease their amount of risky assets.

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Definitions:

Organic Nutrients

Substances derived from living organisms necessary for growth and health, including vitamins, minerals, and amino acids.

Immune Antibodies

Proteins in the blood that are produced in response to and counteract specific antigens, playing a key role in the immune response.

Fibrocartilage

A type of tough, dense, and supportive cartilage that contains collagen fibers, found in areas such as intervertebral discs and menisci.

Nose

External structure of the respiratory system that is involved in the process of ventilation.