A major advantage of discriminant models to assess the credit risk of a customer is the stability of the coefficient weights over time.
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Q18: Residential mortgages are a relatively small component
Q19: Credit risk applies only to bond investment
Q20: The amount of security or collateral on
Q21: LIBOR, the London Interbank Offered Rate, is
Q22: The amount of leverage of a borrower
Q24: The risk premium, or spread, between corporate
Q25: Recessionary phases in the business cycle typically
Q26: Credit rationing is a form of managing
Q27: Discriminant models often ignore hard-to-quantify factors in
Q28: Usury ceilings are maximum interest rates imposed
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