In 1994, The Federal Reserve Board ruled against a proposal to use quantitative models to assess credit concentration risk because
A. current methods to identify concentration risk were not sufficiently advanced.
B. there was no public data on default rates on publicly traded bonds.
C. there was sufficient information on commercial loan defaults for banks to perform in-house analysis.
D. problems related to credit concentration risk have been minimal for U.S. banks.
E. there was already a law that requires banks to set aside capital to compensate for credit concentration risk.
Ans: A. current methods to identify concentration risk were not sufficiently advanced.
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A construct is more abstract than everyday concepts
Indicate whether the statement is true or false
A sole proprietorship:
a. consists of a business owned and operated by one individual. b. is a business form that protects the personal assets of the owner. c. is a business form that requires several formalities. d. is a business form that pays taxes as a business. e. All of the above