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:

Companionate Love

A type of love defined by emotional intimacy and a deep bond, often found in long-term relationships and friendships, as opposed to passionate love.

Liking

The pleasure that follows receipt of a reward.

Similarity

In perception, a principle by which we tend to group like figures, especially by color and orientation.

Liking

A positive feeling of affection or preference towards someone or something.