Moody's Analytics Is a Model That

question 34

Multiple Choice

Moody's Analytics is a model that:

• A)was developed by the KMV Corporation and now owned and operated by Moody's.
• B)measures the expected return on a loan to a borrower, the risk of a loan to a borrower and the correlation of default risks between loans made to a borrower and other borrowers.
• C)seeks to estimate an efficient frontier for loans.
• D)All of the listed options are correct.

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Definitions:

Chart of Accounts

An organized list of all ledger account titles and numbers used by a company, detailing all transactions' recording places.

General Ledger

A comprehensive record of all financial transactions of a company, systematically organized by accounts.

Net Income

The remaining earnings of a company following the deduction of all expenses and taxes from its total income.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet.