According to Moody's Analytics, Default Correlations Tend to Be _____

question 32

Multiple Choice

According to Moody's Analytics, default correlations tend to be _____ and lie between _______.

• A)Low; 0.002 and 0.15
• B)High; 1.86 and 2.99
• C)Low; 0.001 and 0.002
• D)High; 2.99 and 3.50
• E)Low; 0 and 0.001

---

Definitions:

Charter Business

A company that operates under a charter, offering specified services or engaging in a particular type of business, often subject to special regulations or privileges.

Secured Loan

A loan backed by collateral, providing the lender a right to claim the asset if the borrower defaults on the loan.

Priority

The order in which rights, obligations, or claims are ranked or considered, often in a legal context.

Default

Failure to fulfill a duty or obligation, typically in the context of financial agreements such as failing to make loan payments.