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Answer all, thnak you Question 1 (Mandatory) (10 points) Loan sales by an Fl are another tool to manage credit risk of the Fl. A)

Answer all, thnak you

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Question 1 (Mandatory) (10 points) Loan sales by an Fl are another tool to manage credit risk of the Fl. A) True B) False Question 2 (Mandatory) (10 points) The growth of the commercial paper market as well as the increased ability of banks to underwrite commercial paper has reduced the importance of short-term segment of the loan sales market. A) True B) False Question 3 (Mandatory) (10 points) When an Fl sells a loan without recourse, the credit risk of the loan is completely eliminated from the Fls balance sheet. A) True B) False

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