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.
Correct Answer:
Verified
Q7: Which of the following statements is false?
A)Default
Q9: In Australia, a securitisation program must have:
A)a
Q10: Currently, this basic type of loan sale
Q11: Which of the following is true concerning
Q13: Loan participations are:
A)riskier than loan assignments
B)less risky
Q15: Loan participations are typically sold to correspondent
Q16: This propensity to prepay means:
A)realised coupons/cash flows
Q17: ....is a relationship between a small bank
Q18: Assignments:
A)are common in loan syndications
B)do not have
Q19: The move towards market value accounting:
A)increases banks'
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