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QUESTION 1 The following questions are from Chapter 25 Loan Sales. Which of the following is a contractual mechanism used by Fls to control credit

QUESTION 1 The following questions are from Chapter 25 Loan Sales. Which of the following is a contractual mechanism used by Fls to control credit risks? A. Avoiding assets that have high systematic risks. B. Investing in assets that have low unsystematic risks. C. Allocating more assets in those that have high fire sale prices relative to fair value. D. Placing more restrictive covenants on the actions of more risky borrowers. E. None of the above

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