Which of the Following Ratios Would Be a Measure of Credit

question 2

Multiple Choice

Which of the following ratios would be a measure of credit risk?

• A)Net charge-offs of loans/Total loans and leases
• B)Interest on CDs/Total CDs issued
• C)Interest Sensitive Assets/Interest Sensitive Liabilities
• D)Equity Capital/Total Assets
• E)None of the options is correct

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Definitions:

Lateral Displacement

The movement of a body part sideward from its normal position.

Systemic Hypertension

A chronic medical condition in which the blood pressure in the arteries is elevating higher than normal levels, affecting the entire body.

Volume Overload

A clinical condition where there is an excessive accumulation of fluid in the body, leading to swelling and increased blood volume.

Semilunar Valves

Valves located between the ventricles of the heart and the large arteries leaving the heart (the pulmonary artery and aorta) that prevent backflow of blood into the ventricles.