Included in the Moody's Analytics Model Are Recovery Rates on Defaulted

question 58

True/False

Included in the Moody's Analytics model are recovery rates on defaulted loans.

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Definitions:

Risk Of Loss

A provision in contracts determining who bears the risk for damage to goods after purchase but before delivery.

Indemnification

A financial agreement in which one party agrees to cover the losses or damages incurred by another.

Entrustment

The transfer of goods to a merchant who ordinarily deals in that type of goods. If the merchant subsequently sells them to a good-faith third-party purchaser, the buyer acquires good title to the goods.

Merchant Authority

The legal ability of a retailer or agent to act on behalf of a business in a way that binds the business.