Assume That an FI's Concentration Limit on a Particular Sector

question 38

Multiple Choice

Assume that an FI's concentration limit on a particular sector is 15 per cent and that the sector's loss rate is 25 per cent. What is the maximum loss as a percentage of the FI's capital (round to two decimals) ?

• A) 1.67 per cent
• B) 0.60 per cent
• C) 10.00 per cent
• D) 3.75 per cent

---

Definitions:

Anarchism

A political philosophy that advocates self-governed societies based on voluntary, cooperative institutions and the rejection of all involuntary, coercive forms of hierarchy.

Bakunin

Mikhail Bakunin was a Russian revolutionary anarchist, socialist and founder of collectivist anarchism.

Kropotkin

Kropotkin refers to Peter Kropotkin (1842-1921), a Russian activist, scientist, and anarchist philosopher renowned for his advocacy of anarchism and mutual aid.

Émile Zola

A French novelist, journalist, and playwright who was a major figure in the naturalism movement and the Dreyfus affair's exoneration.