In a Loan Participation,which of the Following Is/are True

question 14

Multiple Choice

In a loan participation,which of the following is/are true?
I. The loan buyer has no part in the original underlying credit agreement,even after purchase of the loan.
II. If the selling bank fails,the loan buyer's claim against the selling bank may be treated as unsecured.
III. In the event the selling bank fails,the original borrower's deposits may be used to reduce the loan amount without any proceeds going to the loan buyer.

• A)I only
• B)II only
• C)II and III only
• D)I and II only
• E)I,II,and III

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Definitions:

Retail Storage

The space used to store merchandise in retail operations before it is sold to customers.

Inventory Cost

The total cost associated with holding and storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.

Transportation Cost

Expenses incurred in the process of moving goods from one location to another, including freight charges, fuel costs, and maintenance.

Channel Activity

Actions or operations undertaken by intermediaries in the distribution channel to move products from producers to consumers.