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For a Loan Sold with Recourse

Question 31

Multiple Choice

For a loan sold with recourse,


A) the loan seller has no further obligation at all to the loan buyer.
B) the loan seller removes the assets from the balance sheet and does not report a contingent liability in the footnotes.
C) the loan buyer cannot collect from the loan seller in the event of borrower default.
D) no reserve requirement is imposed.
E) none of the options presented.

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