The term 'recourse' refers to the ability to put an asset or loan back to the seller should the:
A)asset need to be entirely written off
B)credit quality of that asset improve
C)buyer not need the asset any longer
D)credit quality of that asset deteriorate

Question

Quizplus · Accepted Answer

Recourse refers to the ability to put an asset or loan back to the seller if the credit quality of that asset deteriorates, making it a risky investment for the buyer. This provides the buyer with some protection against potential losses.

The Term 'Recourse' Refers to the Ability to Put an Asset