Research has shown that current-year income for an FI is rarely affected by the decision to sell loans from their balance sheet.

Name: Research has shown that current-year income for an FI is rarely affected by the decision to sell loans from their balance sheet.
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Question

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Selling loans from their balance sheet can affect an FI's (Financial Institution's) current-year income by either realizing gains or losses on the sale, impacting interest income, and affecting provisioning for loan losses.

Research Has Shown That Current-Year Income for an FI Is