A ____ loan may be especially appropriate when the bank wishes to avoid adding more debt to its balance sheet.

Question

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A direct lease allows the bank to finance the purchase of an asset for a customer without adding debt to its own balance sheet. The bank essentially leases the asset to the customer and the customer makes payments over time. This type of loan would be appropriate for a situation where the bank wants to avoid adding more debt to its balance sheet.

A ____ Loan May Be Especially Appropriate When the Bank