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Exam CCRA-L2 Topic 6 Question 84 Discussion
AIWMI Exam CCRA-L2 Topic 6 Question 84 Discussion
Actual exam question for AIWMI's CCRA-L2 exam
Question #: 84
Topic #: 6
[All CCRA-L2 Questions]
Which of the following is false in case of credit enhancements?
A
It reduces the default risk of the borrowing entity for the lender, thereby deteriorating the overall credit worthiness of the borrower
B
Credit enhancement could be implicit or explicit
C
Credit 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
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Suggested Answer:
A
by
Georgene
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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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Leslie
5 days agoWilda
7 days agoVirgie
8 days ago