Which of the Following Methods Measure Loan Concentration Risk by Tracking

question 6

Multiple Choice

Which of the following methods measure loan concentration risk by tracking credit ratings of firms in particular sectors or ratings class for unusual downgrades?

• A)Migration analysis.
• B)Concentration limits.
• C)Loan loss ratio-based model.
• D)Moody's Analytics portfolio manager model.
• E)Loan volume-based model.

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Definitions:

Ethnocentrism

The conviction that one's ethnic group or culture is superior by nature, usually paired with the habit of judging other cultures based on the standards of one's own.

Corporate Gifts

Items given by a company to its clients, employees, or other stakeholders as a gesture of goodwill or appreciation.

Individualism View

A perspective that emphasizes the importance of individual rights and responsibilities, often contrasted with collectivism.

Ethical Behaviour

Conduct that is in accordance with what is considered morally right and fair in society, often guided by codes of conduct in professional settings.