An Adverse Material Changes in Conditions Clause Is Included in Loan

question 63

Multiple Choice

An adverse material changes in conditions clause is included in loan commitments to protect the FI against:

• A)funding risk
• B)interest rate risk
• C)takedown risk
• D)credit risk

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Definitions:

Copper

A ductile, malleable metal with high thermal and electrical conductivity, widely used in electrical wiring and electronics.

Twisted-pair

A type of cabling that consists of pairs of wires twisted together to reduce electromagnetic interference.

Cable Medium

A physical transmission medium used in networking to carry data through wires, including coaxial and fiber-optic cables.

Twisted-pair

Twisted-pair cable is a type of wiring in which two conductors of a single circuit are twisted together for the purposes of improving electromagnetic compatibility.