Question: Expected loss is: a) The average amount which isn't paid by the borrower to the lender; it depends on counterparty risk, the transaction amount, and

Expected loss is:
a) The average amount which isn't paid by the borrower to the lender; it depends on counterparty risk, the transaction amount, and the possibility to recover the loan.
b) The loss that a lender expects from a position that's covered by an adequate equity level.
c) The value resulting from the application of formulae set down in the document issued by the Basel Committee.

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