Multiple Choice
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) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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