Ordinary (non-securitized)loans cannot be resold after they have been granted by a bank or another lender.Therefore,these loans are
A) financial assets but not financial securities.
B) financial securities but not financial assets.
C) both financial assets and financial securities.
D) neither financial assets nor financial securities.

Question

Quizplus · Accepted Answer

Ordinary loans are considered financial assets because they represent a claim on future cash flows, but they are not financial securities because they cannot be traded or resold in financial markets.

Ordinary (Non-Securitized)loans Cannot Be Resold After They Have Been Granted