AIWMI Exam CCRA-L2 Topic 6 Question 84 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 84
Topic #: 6

Which of the following is false in case of credit enhancements?

AIt reduces the default risk of the borrowing entity for the lender, thereby deteriorating the overall credit worthiness of the borrower

BCredit enhancement could be implicit or explicit

CCredit enhancement is a mechanism whereby external cash flows is extended by an entity which has a stringer credit profile, so that it benefits the fund raising entity

Show Suggested Answer

Suggested Answer: A

by Georgene at Apr 13, 2024, 01:03 PM

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Leslie

5 days ago

Great, I think we've got it figured out. *chuckles* Although, I have to say, these exam questions can really be a minefield sometimes.

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Wilda

7 days ago

Yep, that's my understanding as well. Option A is the odd one out here.

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Virgie

8 days ago

Haha, no kidding! It's like they're trying to trick us. But hey, at least we're all in this together, right?

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