Using the Moody's Analytics Model, the Return on a Loan

question 49

True/False

Using the Moody's Analytics model, the return on a loan can be calculated as the annual all-in-spread minus the loss in the event of default.

---

Definitions:

Money Supply

This refers to the total amount of money (including cash, coins, and balances in bank accounts) in circulation within an economy at a given time.

Economic Behaviorists

Economic Behaviorists study how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions, and the consequences these decisions have on market prices, returns, and the allocation of resources.

Rational Behavior

Rational behavior refers to the decision-making process that involves choosing the most efficient means to achieve a desired result.

Economic Self-interest

The driving force behind the actions of individuals that encourages them to fulfill their needs and desires.