A Buyer of a Loan Participation Is Exposed to

A buyer of a loan participation is exposed to

A) risk exposure to the original borrower defaulting.
B) risk exposure to the failure of the selling bank.
C) moral hazard problems because the borrower is no longer monitored by the seller.
D) risk of exposure to the original borrower defaulting and risk exposure to the failure of the selling bank.
E) Risk exposure to the original borrower defaulting, and moral hazard problems because the borrower is no longer monitored by the seller.