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    Question

    Which of the following is an example of an early warning

    signal of asset quality deterioration?
    A Increase in repayment frequency Correct Answer Incorrect Answer
    B Frequent change in account operating authority Correct Answer Incorrect Answer
    C Improvement in credit score Correct Answer Incorrect Answer
    D Increase in credit limit Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Such changes may indicate internal control issues or diversion of funds — classic early warning signs.

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