📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    A borrower has good past track record, moderate

    leverage, but current industry is in cyclical downturn and cash flows are under stress for next 12 months. What is the best credit strategy?
    A Stop all disbursements Correct Answer Incorrect Answer
    B Recall the limits Correct Answer Incorrect Answer
    C Enhance limits aggressively Correct Answer Incorrect Answer
    D Continue support with close monitoring Correct Answer Incorrect Answer
    E Classify as NPA Correct Answer Incorrect Answer

    Solution

    Temporary cyclical stress + good history → support with tight monitoring

    Practice Next
    More Basic Accounting Concepts Questions
    ask-question