12-44 Under Which Model Does an FI Compare Its Own

question 56

Multiple Choice

12-44 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)KMV portfolio manager model.
• E)Loan volume-based model.

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Definitions:

Seasonal Revenues

Revenues that show significant fluctuations according to the time of year, often influenced by holidays, weather, and social customs.

Interim Report

A financial statement reported by a company for a period less than one year, often quarterly, to provide updates on its performance.

Discrete Approach

A method in mathematics and computing that involves distinct, separate values rather than a continuous set of values.

Integral Approach

A comprehensive method or strategy that considers all factors, components, or aspects as interconnected and essential for achieving a particular goal or understanding a complex issue.