12-22 Migration Analysis Is a Tool to Measure Credit Concentration

question 57

Multiple Choice

12-22 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:

Class Action

A legal procedure that allows many people with similar grievances to combine their lawsuits into one action against a common defendant.

Plurality Action

A decision-making process or election outcome determined by the largest fraction of votes, even if it does not constitute a majority.

Amicus Curiae

A legal term referring to someone not a party to a case who offers information, expertise, or insight that has a bearing on the issues in the case.

Federal Appellate Courts

Courts within the federal judicial system that have the authority to review decisions made by lower courts, ensuring the correct application of law without conducting trials.