Loan sales by an FI are another tool to manage credit risk of the FI.

Name: Loan sales by an FI are another tool to manage credit risk of the FI.
Brand: Quizplus
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Question

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Loan sales can help an FI reduce its credit risk by transferring the risk of default to another party. This strategy involves selling off loans to another institution or investor, who then assumes the risk associated with the loan.

Loan Sales by an FI Are Another Tool to Manage