An "Material Adverse Change in Conditions" Clause Is Included in Loan

question 50

Multiple Choice

An "material adverse change in conditions" clause is included in loan commitments to protect the FI against

• A)credit risk.
• B)interest rate risk.
• C)takedown risk.
• D)funding risk.
• E)exchange rate risk.

---

Definitions:

Isotope

Variants of a chemical element that have the same number of protons but different numbers of neutrons in their atoms, affecting their atomic mass but not their chemical properties.

Electrons

Subatomic particles with a negative electric charge, found outside the nucleus of an atom.

Cobalt

A chemical element with symbol Co and atomic number 27, known for its blue-colored compounds and magnetic properties.

Fe

Symbol for Iron, a chemical element with atomic number 26, known for its strength and magnetic properties.