Question

In each pair below, indicate which asset exhibits the greatest credit risk. Describe why.
a. Commercial loan to a Fortune 500 company or a loan to a corner grocery store
b. Commercial loans to two businesses in the same industry; one is collateralized by accounts receivable from sales, while the other is collateralized by inventory as work- in- process
c. Five- year Baa- rated municipal bond or a five- year agency bond from the Federal Home Loan Bank system
d. One- year student loan (college) or a one- year car loan


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  • CreatedNovember 03, 2015
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