If a Bank Wants to Differentiate Between Successful and Unsuccessful

question 20

Multiple Choice

If a bank wants to differentiate between successful and unsuccessful credit risks for home mortgage loans, it should use _____.

• A) factor analysis
• B) multidimensional scaling
• C) MANOVA
• D) discriminant analysis

---

Definitions:

Psychological Capital

A person's favorable mental condition, defined by confidence in one's own abilities, a positive outlook, aspirations for the future, and the capacity to recover from difficulties.

Large Bank

A financial institution that possesses significant assets, offers a wide array of services, and operates on a large scale, often internationally.

Well-Being

The state of being comfortable, healthy, or happy; an assessment of an individual's general health, happiness, and life satisfaction.

Leadership Position

A role that entails guiding, directing, or influencing others towards achieving organizational goals or objectives.