26. What is the purpose of loan review in lending risk management?
a) To ensure accurate credit scoring
b) To identify potential defaults or weaknesses in the loan portfolio
c) To increase the loan approval rate
d) To calculate the loan amount
27. How does economic stability affect lending risks?
a) It increases credit risk
b) It reduces credit risk
c) It has no impact on lending risks
d) It decreases the need for loan diversification
28. Which of the following is an example of operational risk in lending?
a) Economic recession
b) Inaccurate credit scoring
c) Unforeseen natural disasters
d) Asset-liability mismatch
29. What is the purpose of credit risk rating in lending?
a) To determine the appropriate interest rate for each borrower
b) To assess the borrower’s creditworthiness
c) To evaluate the bank’s capital adequacy
d) To identify collateral requirements for loans
30. How does loan tenure affect credit risk in lending?
a) Longer loan tenure reduces credit risk
b) Longer loan tenure increases credit risk
c) Loan tenure has no impact on credit risk
d) Loan tenure only affects the interest rate
