Compensating balance is a proportion of:
A) a loan that a borrower is required to hold on deposit at a correspondent bank
B) a loan that a borrower is required to hold on deposit in foreign reserves
C) a loan that a borrower is required to hold on deposit at the lending institution
D) the investment that a borrower is required to hold on deposit at the lending institution
Correct Answer:
Verified
Q44: Loan to value ratio is the:
A)loan amount
Q45: Non-performing loans are loans with yield less
Q46: Default risk is the risk that the
Q47: Non-performing loans are loans:
A)given out to corporations
Q48: Credit scoring models include:
A)linear probability models
B)logit models
C)linear
Q50: Term structure of credit risk approach models
Q51: In the context of the KMV Credit
Q52: Assume a $500 000 loan has a
Q53: Unsecured loans are riskier than secured loans
Q54: Assume that B = $200 000, r
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