AIWMI Exam CCRA-L2 Topic 2 Question 8 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 8
Topic #: 2

Based on the Moody's KMV model which of the following is not correct?

A: Growth variables are important for default analysis. rapid growth will lead to lower probability of default and rapid decline will lead to higher probability of default.

B: Activity ratios are relevant for default analysis. A large stock of inventories relative to sales will lead to a higher probability of default.

AOnly Statement A is correct

BBoth the statements are correct

CNone of the statements is correct

DOnly Statement B is correct

Show Suggested Answer

Suggested Answer: D

by Paz at May 03, 2022, 07:19 AM

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