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Doctors Medicines MCQs Q&A

  1. A, B and C only
  2. A, C and D only
  3. B and C only
  4. D only
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1 Answers

Option 4 : D only

The correct answer is D only

Provide information for determining adequacy of loan loss provision will not result in credit risk.

 Credit Risk:

  • The risk of losing money due to a borrower's failure to repay a loan is known as credit risk.
  • It refers to a lender's risk of having its cash flows disrupted if a borrower fails to pay principal or interest on a loan.
  • When a borrower does not have enough cash flow to pay a creditor or does not have enough assets to sell to make a payment, credit risk is deemed to be higher.
  • The lender is more likely to demand compensation in the form of a higher interest rate if the risk of non-payment is greater.
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