12-34 Matrix Bank Has Compiled the Following Migration Matrix on Consumer

question 31

Multiple Choice

12-34 Matrix Bank has compiled the following migration matrix on consumer loans.Which of the following statements accurately summarizes this data?

• A)Ten percent of grade two loans were upgraded during the year.
• B)Grade one loans have a higher probability of downgrade than grades two or three.
• C)Grade three loans have a higher probability of upgrade than grade two loans.
• D)Grade three loans have a higher probability of downgrade than grade two loans.
• E)All of the above.

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Definitions:

Three-Box Model

A model of memory that suggests information is processed through three stages: sensory memory, short-term (or working) memory, and long-term memory.

Short-Term Memory

The component of the memory system that holds a small amount of information for a brief period of time.

Priming

A psychological phenomenon where exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

Explicit Memory

A type of long-term memory involving the conscious recollection of factual information, previous experiences, and concepts.