Which of the Following Statements Is True

question 59

Multiple Choice

Which of the following statements is true?

• A)Loan loss ratio based models rely on actual data and involve the estimation of the systematic loan loss risk of a particular industry relative to the loan loss risk of an FI's total loan portfolio.
• B)Loan loss ratio based models rely on historic data and involve the estimation of the systematic loan loss risk of a particular industry relative to the loan loss risk of an FI's total loan portfolio.
• C)Loan loss ratio based models rely on historic data and involve the estimation of the systematic loan loss risk of a particular borrower relative to the loan loss risk of an FI's total loan portfolio.
• D)Loan loss ratio based models rely on actual data and involve the estimation of the systematic loan loss risk of a particular borrower relative to the loan loss risk of an FI's total loan portfolio.

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Definitions:

Awards Contract

A formal agreement given after a tendering process, where a party commits to providing goods or services.

Buying Center

The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.

Purchase Decision

The final decision made by a consumer after evaluating available options and deciding to buy a product or service.

Buying Center

A group of individuals within an organization who are involved in the process of making a purchasing decision.