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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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