Question

QUESTION 7

1. Which of the following formalizes a bank's lending guidelines?

   	1.	Loan policy
   	2.	Credit culture
   	3.	Credit analysis
   	4.	Credit review
   	5.	Loan documentation

6 points   

QUESTION 8

1. Non-performing international loans do not completely reflect potential losses
   because:

   	1.	foreign governments have never defaulted on their debts.
   	2.	banks often loan borrowers funds to make payments on existing loans.
   	3.	U.S. banks can easily recover the funds in foreign courts.
   	4.	the U.S. government has strongly discouraged U.S. banks from making international loans.
   	5.	all of the above

Answer 1

Question 1

Which of the following formalizes a bank's lending guidelines?

Answer

Credit culture

Credit culture is related with credit discipline and these include some guidelines and policies which a bank should follow while giving credit to its customers. These are different disciplines, principles and actions in the lending process.

Question 2

Non-performing international loans do not completely reflect potential losses, because.

Answer

banks often loan borrowers funds to make payments on existing loans.

Banks some times use borrower's funds for the purpose of making existing loan payment. Borrowers funds are those funds which are collected from another party by making an obligation to repay it with in the time span. So banks will use this funds to repay the existing loans so that there is no chance of potential losses.

ThankYou.....