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What Techniques Should the Financial Institution Adopt in Order to Effectively

question 45

Essay

What techniques should the financial institution adopt in order to effectively absorb or manage credit and market risks?


Definitions:

Probability

An assessment of the chance of an event taking place, denoted by a number from 0 to 1, with 0 signifying that the event is not possible and 1 signifying that the event is guaranteed to happen.

Event Occurs

A term indicating the point in time or space at which an event takes place.

Independent

In statistics, refers to variables or events that are not influenced or caused by other variables within the scope of a study.

Dependent

A variable in an experiment or study that is expected to change in response to changes in another variable called the independent variable.

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