The Most Common Way of Assessing the Overall Credit Risk

question 31

Multiple Choice

The most common way of assessing the overall credit risk of a loan portfolio is by using:

• A)internal credit risk rating of the borrower.
• B)concentration ratio by geographical area,loan type and business type.
• C)credit analysis of the 6 Cs.
• D)credit scoring.

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Definitions:

18th Century

The period from 1701 to 1800 in the Gregorian calendar, marked by significant events such as the Enlightenment, the Industrial Revolution, and the American Revolution.

Identity Group

A collection of individuals who share specific social characteristics, beliefs, or experiences that shape their collective identity.

Boomerang Effect

A phenomenon where an attempt to change beliefs or attitudes does the opposite, reinforcing pre-existing beliefs.

Queer Youth

Young individuals who identify with or are perceived to belong to a non-normative sexuality or gender identity.