Which of the Following Could Be Used to Reduce a Bank's

question 53

Multiple Choice

Which of the following could be used to reduce a bank's credit risk exposure?
I. Increase its loan to deposit ratio
II. Increase its allowable concentration ratio
III. Increase its required minimum credit score
IV. Participate in loans in other geographic areas

• A) I and II
• B) I, II and III
• C) I, II and IV
• D) III and IV
• E) I, II, III and IV

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Definitions:

Weighted Average Method

Weighted Average Method is an inventory costing method where the cost of goods sold and ending inventory value are calculated based on the weighted average cost of all inventory items.

Weight Factors

Variables or coefficients applied in calculations to adjust the importance or influence of specific elements in quantitative analysis or models.

Weighted Physical Units

A method used in cost accounting to average the units produced during a period, accounting for units in progress at the beginning and end of the period.

Net Realizable Method

An accounting approach used to evaluate inventory or accounts receivable's net value, accounting for possible losses or costs.