Question
SLABS stand for Student Loans Asset Backed Securitization, which is a commonly used financial innovation in the student loan industry. Pick the correct answer: Statement1:
SLABS stand for Student Loans Asset Backed Securitization, which is a commonly used financial innovation in the student loan industry. Pick the correct answer: Statement1: Loan issuing agencies sell off the debt to outside investors, because they can recover their loaned out amount quickly enabling them to make more loans as well as earn fees; Statement 2: BUT, the loan issuers still have to bear the risk if students default on their loans.
| Statement 1 is True, Statement 2 is True | ||
| Statement 1 is True, Statement 2 is False | ||
| Statement 1 is False, Statement 2 is True | ||
| Statement 1 is False, Statement 2 is False |
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