Assume That an FI's Concentration Limit on a Particular Sector

question 22

Multiple Choice

Assume that an FI's concentration limit on a particular sector is 15% and that the sector's loss rate is 25%.What is the maximum loss as a percentage of the FI's capital (round to two decimals) ?

• A)1.67%
• B)0.60%
• C)10.00%
• D)3.75%

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Definitions:

Dispositional Factors

Internal factors such as beliefs, attitudes, personality traits, and genetics that influence behavior.

Zimbardo

Refers to Philip Zimbardo, a psychologist known for conducting the Stanford prison experiment that explored the effects of perceived power and authority on behavior.

Bystander Intervention

The phenomenon where individuals witnessing an emergency or crime are more or less likely to assist the victim based on the presence of other witnesses.

Yell "Fire!"

A metaphorical expression or a literal action that suggests causing a sudden alert or panic, often used in discussions of human reactions in emergency situations.