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Which of the following is NOT an advantage to banks of securitizing loans? (A) Remove risky loans from their books and ease capital requirements. B)
Which of the following is NOT an advantage to banks of securitizing loans?
(A) Remove risky loans from their books and ease capital requirements.
B) Retain servicing fees on loans without having to carry the loan on the books.
(C) Use the funds received from investors in those securitized loans to make additional loans and investments.
(D) Improve the likelihood that the securitized loans will be repaid.
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