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The Qualified Thrift Lender test requires that thrifts A) limit the amount of mo

ID: 2749598 • Letter: T

Question

The Qualified Thrift Lender test requires that thrifts

A) limit the amount of mortgage-related assets on hte balance sheet to improve diversification.

B) Invest in a minimum percentage of government-backed securities to protect their morggage loans.

C) lend no more than 80% of the value of a home to a borrower to ensure mortage safety.

D) keep 35% of their assets in safe liquid investments to ensure adequate deposit liquidity.

E) invest at least 65% of their assets in mortgages or mortgage-related assets.

Explanation / Answer

The Qualified Thrift Lender test requires that thrifts A) limit the amount of mo

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