Exit 2016-FRR Financial Risk and Regulation (FRR) Series
Question 3 of 5
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Q3 Single choice

Which one of the following is a reason for a bank to keep a commercial loan in its portfolio until maturity?

I. Commercial loans usually have attractive risk-return profile.
II. Commercial loans are difficult to sell due to non standard features.
III. Commercial loans could be used to maintain good relations with important customers.
IV. The credit risk in commercial loans is low.

  • A

    I, II and III

  • B

    III and IV

  • C

    II and IV

  • D

    IV only