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AIWMI Exam CCRA-L2 Topic 6 Question 93 Discussion

Actual exam question for AIWMI's CCRA-L2 exam
Question #: 93
Topic #: 6
[All CCRA-L2 Questions]

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

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Suggested Answer: A

Contribute your Thoughts:

Leila
11 days ago
I'm just here for the free snacks. Whoever gets this right deserves a raise!
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Stefania
17 days ago
This question is a real head-scratcher! Maybe the answer is 'all of the above' and the exam is just trying to trick us.
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Martina
5 days ago
A) It reduces the default risk of the borrowing entity for the lender, thereby deteriorating the overall credit worthiness of the borrower
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Jamal
1 months ago
Hold on, I'm pretty sure option C is false. Doesn't credit enhancement involve the borrowing entity getting external support, not the other way around?
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Jenelle
1 months ago
I'm not sure, but I think option B is the one that's false. Credit enhancement is always explicit, right?
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Valene
21 days ago
User 2: I disagree. I believe option C is the false statement. Credit enhancements can be implicit or explicit.
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Daren
23 days ago
User 1: I think option A is false. Credit enhancements actually reduce default risk.
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Yuriko
1 months ago
I believe the false statement is A) because credit enhancements actually improve the credit worthiness of the borrower
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Bettyann
1 months ago
I agree with Lavera, A) seems incorrect
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Lavera
1 months ago
I think the false statement is A)
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Tabetha
1 months ago
Hmm, I think option A is the correct answer. Credit enhancement is supposed to improve the creditworthiness of the borrowing entity, not deteriorate it.
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Shaun
24 days ago
User 2: Yeah, credit enhancement is meant to reduce default risk, not increase it.
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Cristy
27 days ago
User 1: I agree, option A seems to be the correct answer.
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