Which of the Following Situations Is Similar to the Externality

question 93

Multiple Choice

Which of the following situations is similar to the externality effect?

• A)Exercising an adverse material change in conditions clause as a last resort, thereby canceling or repricing a loan commitment.
• B)Increase in the cost of funds above normal levels while many FIs scramble for funds to meet their commitments to customers during a credit crunch.
• C)In a loan commitment, the borrower takes down only part of the funds over the specified time-period.
• D)The buyer of a commercial letter of credit fails to perform as promised under a contractual obligation.
• E)All of these.

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Definitions:

Positional Tolerancing

A method of specifying the permissible variation in the position of a part feature relative to its intended design location.

Small Round Holes

Tiny circular openings, typically created through drilling or punching in a material for various purposes.

Coordinate Tolerance

The allowable deviation from the true position specified for a feature in relation to a referenced coordinate system.

Positional Tolerance

A geometric dimensioning and tolerancing (GD&T) concept that specifies the allowable variation in the position of a feature relative to its ideal position.