Which of the Following Statements Is Not Correct Concerning Credit

question 34

Multiple Choice

Which of the following statements is not correct concerning credit risk?

• A)Credit risk is the risk of counterparty default and is usually the single largest risk facing an FI.
• B)Credit risk occurs when borrowers are unable to repay their loans on time.
• C)Credit risk decreases when FIs concentrate their loan exposures on a few counterparties and APRA requires that FIs have appropriate policies to manage such risk.
• D)Credit risk increases when FIs concentrate their loan exposures on a few counterparties.

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Definitions:

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The prescribed amount of a medication or drug that is to be taken within a specified period to achieve the desired therapeutic effect.

Allergies

Immune system reactions to a substance that most people find harmless, resulting in symptoms like sneezing, itching, and swelling.

Medication Interactions

Situations where one medication affects the activity, effectiveness, or side effects of another medication when taken together.

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