Final answer:
The truth of the statement regarding the automatic creation of an Entity Involvement record for a household in a loan management or CRM system cannot be confirmed without specific system knowledge
Step-by-step explanation:
The statement regarding the automatic creation of an Entity Involvement record for a household when a new loan product is created for a Relationship is specific to the workings of a particular computer system or software. It cannot be definitively answered as true or false without specific knowledge about the system in question. In general, the functionality of systems involving financial products like loans can differ based on how the software is designed.
Financial institutions typically use complex Customer Relationship Management (CRM) software or loan management systems that handle various tasks. The creation of Entity Involvement records might be automated in some systems, especially if the system is set up to link household financial products and involvements with ease. Such automation can help with reporting, risk assessment, and relationship management. However, whether this occurs automatically depends on the system's default settings or configurations established by the institution. Users should refer to the respective system documentation or support to confirm the specific behavior of their software.