Question
The level of risk that arises from exposure to a single
counterparty or sector, and it has the potential to produce large amounts of losses is called:Solution
Concentration risk is the level of risk that arises from exposure to a single counterparty or sector, and it offers the potential to produce large amounts of losses that may threaten the lender’s core operations. For example: If a lender takes a large amount of exposure to one borrower who is having one type of business, then there is a concentration risk for the lender.
What is the name of the process by which a liquid changes into gas at all temperatures? Â
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Mirror formula is
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