Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. which of the following would you consider as the m

Which of the following would you consider as the main drivers of credit risk: a) Economic factors,...

50.1K

Verified Solution

Question

Finance

Which of the following would you consider as the main drivers ofcredit risk:

a) Economic factors, borrower characteristics and legalinfrastructure

b) Recovery rates, credit exposure and probability ofdefault

c) Interest rates, probability of defaults and concentration oflending

d) Counterparty credit ratings, loss given default, and exposureat default

Give a short explanation justifying your answer.

Answer & Explanation Solved by verified expert
3.6 Ratings (392 Votes)
Credit Risk The possibility of borrowers failure to the repayment of the loan or failure to meet out other obligation is considered as credit risk Basically it is impossible to identify who will do    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Which of the following would you consider as the main drivers ofcredit risk:a) Economic factors, borrower characteristics and legalinfrastructureb) Recovery rates, credit exposure and probability ofdefaultc) Interest rates, probability of defaults and concentration oflendingd) Counterparty credit ratings, loss given default, and exposureat defaultGive a short explanation justifying your answer.

Other questions asked by students

Q

High-altitude mountain climbers do not eat snow, but always melt it first with a stove. To...

Physics
Q

A quantity of heat Q is supplied to a monoatomic ideal gas which expands at...

Physics
Q

Explain the phenomenon of beats An ambulance blowing a siren of frequency 700 Hz is...

Physics
Q

Graph the following vector addition 1 1 3 6 Start from the origin One vector...

Geometry
Q

From 6 cards bearing the letters a, b, c, d, e, and f, two cards...

Basic Math
Q

Let h(x) =1/x^12Determine the derivative of h. h'(x) =Determine the interval(s) on which h is...

Calculus
Q

f Find f g f g fg and and their domains Enter your answers for...

Calculus
Q

1 Consider the function B t that gives the temperature of Boston Massachusetts on a...

Calculus
Q

Question Solve 4 6x2 8 0 Enter answers separated by a comma Provide your answer...

Algebra
Q

4 x 3 4 58 6 Type a resp

Algebra
Q

On June 10, meridith Company opurchased $8,000 of merchandise from Leinert Company, FOB shipping point,...

Accounting
Q

On January 1, Skills company purchased as a short investment a $1000, 6% bond for...

Accounting