Question: When a DI makes a shift from an originate-to-hold banking model to an originate-to-distribute model, the change is likely to result in increased liquidity risk.

  1. When a DI makes a shift from an "originate-to-hold" banking model to an "originate-to-distribute" model, the change is likely to result in

    increased liquidity risk.

    increased interest rate risk.

    decreased fee income.

    decreased monitoring costs.

    increased operating costs.

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