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One of the benefits to a bank of securitizing and selling its loans is that: it increases the risk, and therefore the rate of return,
One of the benefits to a bank of securitizing and selling its loans is that:
it increases the risk, and therefore the rate of return, of the bank's balance sheet.
it allows the bank to benefit directly from having made wellresearched loans.
the bank gets more liquid.
it increases the bank's leverage ratio.
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Econometric Analysis
Authors: William H. Greene
8th Edition
978-0134461366, 0134461363
