Models of Credit Risk Measurement Include

question 15

Multiple Choice

Models of credit risk measurement include:

• A)term structure of credit risk approach.
• B)mortality rate approach
• C)RAROC and option models.
• D)All of the listed options are correct.

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Definitions:

Liable

Legally responsible or obligated to provide compensation for causing loss or damage through negligent or wrongful acts.

Irrevocable Right

A legal entitlement or authority that cannot be revoked, altered, or undone once it has been granted or established.

License

A revocable right to use another’s property temporarily.

Real Property

Land and anything permanently attached to it, such as buildings or trees.