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Which of the Following Is a Criterion for a Debt

Question 135

Multiple Choice

Which of the following is a criterion for a debt instrument to be viewed as having a lending or customer financing business purpose?


A) Debt instrument is held for the purpose of being sold.
B) Investor's purpose is collecting cash flows.
C) Investor cannot renegotiate, sell, or settle the debt to minimize losses due to deteriorating credit quality.
D) Investment is actively managed internally on a fair value basis but doesn't qualify for FV-OCI.

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