Under Basel Rules, Expected Credit Loss Is a Function of Which

question 82

Multiple Choice

Under Basel rules, expected credit loss is a function of which of the following sets of parameters:

• A) 1 minus recovery rate, probability of default and exposure at default
• B) exposure at origination, exposure at default and loss given default
• C) loss given default, 1 minus recovery rate and exposure at default
• D) exposure at origination, recovery rates and probability of default

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Definitions:

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The total emissions of greenhouse gases worldwide, contributing to global warming and climate change.

Curb

To check, restrain, or control an action or development, often used in the context of regulations or policies designed to limit certain behaviors.

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Refers to igneous rocks that are rich in lighter elements such as silicon and oxygen, generally characterized by light colors.