Free ICBRR Exam Braindumps (page: 8)

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Gamma Bank provides a $100,000 loan to Big Bath retail stores at 5% interest rate (paid annually). The loan is collateralized with $55,000. The loan also has an annual expected default rate of 2%, and loss given default at 50%. In this case, what will the bank's expected loss be?

  1. $500
  2. $750
  3. $1,000
  4. $1,300

Answer(s): A



Gamma Bank provides a $100,000 loan to Big Bath retail stores at 5% interest rate (paid annually). The loan also has an annual expected default rate of 2%, and loss given default at 50%. In this case, what will the bank's expected loss be? What is the expected loss of this loan?

  1. $300
  2. $550
  3. $750
  4. $1,050

Answer(s): D



Which of the following attributes are typical for early models of statistical credit analysis?

  1. These models assumed the default of any obligor was independent of the default of any other.
  2. The underlying default assumptions were analytically inconvenient.
  3. The underlying default assumptions failed to develop relatively simple formulas for the determination of portfolio credit risk.
  4. These models effectively incorporated herd behavior.

Answer(s): A



A credit analyst wants to determine if her bank is taking too much credit risk.
Which one of the following four strategies will typically provide the most convenient approach to quantify the credit risk exposure for the bank?

  1. Assessing aggregate exposure at default at various time points and at various confidence levels
  2. Simplifying individual credit exposures so that they can be combined into a simplified expression of portfolio risk for the bank
  3. Using stress testing techniques to forecast underlying macroeconomic factors and bank's idiosyncratic risks
  4. Analyzing distribution of bank's credit losses and mapping credit risks at various statistical levels

Answer(s): A



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Vey commented on May 27, 2023
highly appreciate for your sharing.
CAMBODIA
upvote

Vey commented on May 27, 2023
Highly appreciate for your sharing.
CAMBODIA
upvote