Matrix Bank Has Compiled the Following Migration Matrix on Consumer

question 11

Multiple Choice

Matrix Bank has compiled the following migration matrix on consumer loans. Which of the following statements accurately summarizes this data?

• A)Ten percent of grade two loans were upgraded during the year.
• B)Grade one loans have a higher probability of downgrade than grades two or three.
• C)Grade three loans have a higher probability of upgrade than grade two loans.
• D)Grade three loans have a higher probability of downgrade than grade two loans.
• E)All of these.

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Definitions:

Entertainment

Activities, performances, or media produced to provide enjoyment and amusement to individuals or groups.

Subsidy

is financial assistance provided by the government to individuals or groups to support an economic activity deemed beneficial.

Revealed Preferred

A concept in consumer choice theory that preferences can be determined by observing consumer choices under different constraints.

Violates WARP

Refers to a situation where an individual's choice behavior contradicts the Weak Axiom of Revealed Preferences, suggesting inconsistency in their preferences.