Multiple Choice
Which is of the statements below is true?
A) An FI will earn fees when arranging a large loan, even if it sells part or all of the loan later.
B) Like reserve requirements, the capital adequacy requirements imposed on FIs are a burden as long as required capital exceeds the amount the FI believes to be privately beneficial.
C) In addition to credit risk and interest rate risk, holding loans on the balance sheet can increase the overall illiquidity of an FI's assets.
D) All of the listed options are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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