In Determining the Risk-Weighted Value of the On-Balance-Sheet Credit Equivalent

question 72

True/False

In determining the risk-weighted value of the on-balance-sheet credit equivalent amounts of the contingent guaranty contracts, the risk weights are determined by the credit rating of the underlying counterparty of the off-balance-sheet activity.

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Definitions:

Nonequivalent Control Group Design

A quasi-experimental research design where the experimental group and control group may not be strictly comparable at the outset of the experiment, lacking random assignment.

Selection Differences

Differences in the type of subjects who make up each group in an experimental design; this situation occurs whenparticipants elect which groupthey are to be assigned to.

Independent Variable

In experimental research, the factor that is altered by the scientist to observe how it affects a dependent variable.

Dependent Variable

A variable in an experiment that is expected to change in response to manipulations of the independent variable.