According to the Cost-Plus Model for Pricing Loans,the Factors That

question 84

Multiple Choice

According to the cost-plus model for pricing loans,the factors that should be considered in pricing a loan include:

• A)the marginal cost of raising loanable funds to support the loan request.
• B)the lender's nonfunds operating costs.
• C)an appropriate margin to compensate the bank for default risk.
• D)the bank's desired profit margin.
• E)All of the options are required as factors to price a loan.

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Definitions:

Details of Performance

Specifics outlined in a contract or agreement indicating how and when the contractual obligations must be fulfilled.

Personal Performance

The fulfillment of duties or tasks by an individual, often referring to the execution of a contract by personal action.

Contractual Duty

Obligations that a party is legally bound to perform under a contract.

Debt Collector

A person or company tasked with collecting money owed on past due accounts from debtors.