Migration Analysis Is a Tool to Measure Credit Concentration Risk

question 18

Multiple Choice

Migration analysis is a tool to measure credit concentration risk and refers to

• A)the identification of problem loans in sectors by observing periodic migration of industries.
• B)the identification of credit concentration by observing trends in market borrowing by different sectors of the industry.
• C)the identification of credit concentration by observing the downgrading or upgrading of credit ratings on securities in different sectors of industry by public rating agencies.
• D)the identification of borrowing patterns such as long or short term debt by different sectors of industry.
• E)the identification of shifts in debt/asset ratios of firms in specific industries.

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Definitions:

Values Orientations

Cultural or psychological frameworks that guide individual or group behaviors and perceptions regarding what is important in life.

Conflict Episodes

Specific instances of conflict within interpersonal relationships or among groups, characterized by disagreement and discord.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational influences.

Reactance

A psychological reaction that occurs in response to perceived restrictions on one's freedoms or choices, leading to resistance.