Rank order the net charge-off rates from high to low for the following loan types:
I. C&I loans
II. Credit card loans
III. Real estate loans

Question

Quizplus · Accepted Answer

Credit card loans typically have the highest net charge-off rates due to their unsecured nature and higher default risk. C&I (Commercial and Industrial) loans follow, as they can vary widely in risk. Real estate loans generally have the lowest net charge-off rates because they are secured by property, which can be sold to recover losses.

Rank Order the Net Charge-Off Rates from High to Low