BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In BOBRAM rating model, which of the following is not considered as security for calculating facility rating?
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Fixed Deposit
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NSC
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Immovable Property
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Corporate Guarantee
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Explanation:
Detailed explanation-1: -There is no security in loans at the bank rate. The purpose for which RBI uses these two tools determines the benefits of both.
Detailed explanation-2: -Different factors are used to quantify credit risk, and three are considered to have the strongest relationship: probability of default, loss given default, and exposure at default.
Detailed explanation-3: -Facility Risk Rating FRR model helps configure two dimensional rating, based on requested facility parameters and collateral assessment defined by the financial institutions, to provide a realistic approach to assess, measure and rate the loss.
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