One Problem with Using Country Risk Analysis (CRA) Statistical Credit

question 17

True/False

One problem with using country risk analysis (CRA) statistical credit scoring models to evaluate sovereign credit risk is the classification into only two possible outcomes.

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Definitions:

Self-Perception Theory

A theory suggesting that individuals develop attitudes and opinions by observing their own behavior and concluding what attitudes must have caused them.

Cognitive Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, causing discomfort that leads to an attempt to change beliefs or behaviors to reduce the dissonance.

Balance

The ability to maintain bodily equilibrium or stability through the coordination of sensory functions and motor control.

Self-Perception Theory

A theory that suggests individuals develop their attitudes by observing their own behavior and concluding what attitudes must have caused them.