Matrix Bank Has Compiled the Following Migration Matrix on Consumer

question 2

Multiple Choice

Matrix Bank has compiled the following migration matrix on consumer loans.Which of the following statements accurately summarizes this data?

• A)Ten percent of grade two loans were upgraded during the year.
• B)Grade one loans have a higher probability of downgrade than grades two or three.
• C)Grade three loans have a higher probability of upgrade than grade two loans.
• D)Grade three loans have a higher probability of downgrade than grade two loans.
• E)All of the options.

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Definitions:

Operations Management

Management's area of responsibility that involves planning and controlling the procedures of production and reengineering business activities in the making of goods or services.

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as effectively as possible.

Service Sector

A segment of the economy that involves providing services, as opposed to producing goods, including sectors like retail, healthcare, and education.

Manufacturing Sector

The sector of the economy that is engaged in the production of goods through the processing of raw materials and components into finished products.