By Combining Different Economic and Financial Borrower Characteristic, an FI

question 85

Multiple Choice

By combining different economic and financial borrower characteristic, an FI manager is able to:

• A)Numerically establish which factors are important in explaining default risk.
• B)Evaluate the relative degree or importance of these factors.
• C)Improve the pricing of default risk.
• D)Be better able to screen out bad loan applicants.
• E)all are true.

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Definitions:

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Force

The exertion of power, strength, or energy to accomplish a physical action or compel a certain outcome.

Power Abuse

Power abuse is the misuse of authority or control for personal gain, often to the detriment or harm of others, typically seen in organizational, political, or personal relationships.

Vehicle Stop

The act of law enforcement officials stopping a vehicle for investigative purposes or due to suspected infractions.