Credit Administration
and Documentation -
CBCA with verified
solutions
Match the correct descriptions to each of the three
components of credit administration.
A. It involves undertaking regular reviews of a
borrower's financial statements and evaluating
changes in a borrower's business.
B. It provides timely, relevant and thorough
information for loan approval, security and
monitoring.
C. It involves determining new level of credit risk
associated with a borrower.
Documentation
(A, B, or C?)
Monitoring
(A, B, or C?)
Re-classifying
, (A, B, or C?) - answer Documentation
B
Monitoring
A
Re-classifying
C
Which of the following statements is NOT true
about credit administration?
A. Appropriate credit administration and
documentation practices allow for better
information for more informed decision regarding
actions taken towards a borrower's account.
B> Proper credit documentation practices allow for
more flexibility to respond to changes in a
borrower's circumstances.
C. Credit administration is about documentation,
ongoing monitoring, and possibly re-classifying a
borrower before a loan has been made.
D. Credit administration is important for
identifying problems in a borrower's account and
reducing the risk of credit default. - answer C.
Credit administration is about documentation,
ongoing monitoring, and possibly re-classifying a
borrower before a loan has been made.
and Documentation -
CBCA with verified
solutions
Match the correct descriptions to each of the three
components of credit administration.
A. It involves undertaking regular reviews of a
borrower's financial statements and evaluating
changes in a borrower's business.
B. It provides timely, relevant and thorough
information for loan approval, security and
monitoring.
C. It involves determining new level of credit risk
associated with a borrower.
Documentation
(A, B, or C?)
Monitoring
(A, B, or C?)
Re-classifying
, (A, B, or C?) - answer Documentation
B
Monitoring
A
Re-classifying
C
Which of the following statements is NOT true
about credit administration?
A. Appropriate credit administration and
documentation practices allow for better
information for more informed decision regarding
actions taken towards a borrower's account.
B> Proper credit documentation practices allow for
more flexibility to respond to changes in a
borrower's circumstances.
C. Credit administration is about documentation,
ongoing monitoring, and possibly re-classifying a
borrower before a loan has been made.
D. Credit administration is important for
identifying problems in a borrower's account and
reducing the risk of credit default. - answer C.
Credit administration is about documentation,
ongoing monitoring, and possibly re-classifying a
borrower before a loan has been made.
