Under Which Model Does an FI Compare Its Own Allocation

question 29

Multiple Choice

Under which model does an FI compare its own allocation of loans in any specific area with the national allocations across borrowers to measure the extent to which its loan portfolio deviates from the market portfolio benchmark?

• A)CreditMetrics.
• B)Credit Risk +.
• C)Loan loss ratio-based model.
• D)Moody's Analytics portfolio manager model.
• E)Loan volume-based model.

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Definitions:

Problem-Focused Strategies

Refers to coping methods aimed at addressing or changing the root cause of a stressor or problem.

Primary Appraisals

Part of coping that involves making decisions about whether a stimulus is stressful or not.

Richard Lazarus

An influential psychologist known for his research on stress, coping, and emotion.

Cognitive Appraisal Process

The process of evaluating an event or situation that leads to specific emotional reactions.