In Analyzing Credit Risk for a Loan to a Major

question 53

Multiple Choice

In analyzing credit risk for a loan to a major diversified corporation,the bank typically has which of the following advantages?
I. Market-based models to analyze credit risk
II. Greater negotiating power due to the size of the loan required
III. Ratings agency measures of default risk

• A)I only
• B)I and II only
• C)II and III only
• D)I and III only
• E)I,II,and III

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