Question

-FICO scores above 550 are considered good.

True or False

-Net interest margin is the difference between the yield on a government security and the rate on loans issued by a bank.

True or False

-Liquidity risk is the probability that a bank will not be able to pay its interest expenses.

True or False

-Banks do not have the same financial ratios as other companies.

True or False

Answer 1

1. FICO scores will be determining the creditworthiness of an individual and the ability of an individual to pay the credit based upon his past performance and other factors so it is generally assumed that a score of more than 600 is always considered good and score below 600 is not considered good so it can be said that this FICO score of 550 to 600 is not considered good.

It would have to be above 600 in order to be considered good.

The given statement is FALSE.