Interest rates should be based on the relative

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Reference no: EM131872394

1. Read the following sentence regarding the assessment of credit and select the correct option(s) for the missing words from the terms provided further below:

Interest rates should be based on the relative _____ of the customer and in line with the _____ of the bank.

Terms:

credit risk

net asset value

credit policy

credit covenants

2. Read the following paragraph regarding the assessment of credit and select the correct option(s) for the missing words from the terms provided further below:

The customer's contribution is assessed during the analysis of ____, to determine the _____ of the customer to share in the risk of the loan. The_____ the customer contributes the less the customer can lose.

Terms:

less

repayment ability

collateral

opportunity

willingness

Reference no: EM131872394

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