Question

"Haircut" in the context of banking and valuation refers to:

Q: Answer-'Haircut' in the context of banking and valuation refers to:

A haircut is the difference between the market value of an asset and the amount that can be used as collateral for a loan to provide a safety buffer for the lender.

A A discount applied to the market value of an asset used as collateral.

B Salary deduction of employees.

C Reduction in the number of branches.

D Selling an asset at a premium.

E The fees charged by the bank for lockers.

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"Haircut" in the context of banking and valuation refers to:

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