41. How does credit quality impact lending risks?
a) Higher credit quality increases lending risks
b) Higher credit quality reduces lending risks
c) Credit quality has no impact on lending risks
d) Credit quality only affects collateral requirements
42. What is a write-off in lending?
a) Setting aside funds to cover potential loan losses
b) Selling non-performing assets to recover funds
c) Forgiving or canceling a loan that is deemed unrecoverable
d) Restructuring the terms and conditions of a loan
43. How does an increase in interest rates impact lending risks?
a) It reduces lending risks
b) It has no impact on lending risks
c) It increases lending risks
d) It only affects the bank’s profitability
44. What is a borrower default rate in lending?
a) The number of borrowers who default on loans
b) The interest rate charged to borrowers
c) The amount of money borrowed
d) The repayment period of a loan
45. How does collateral quality impact lending risks?
a) Higher collateral quality increases lending risks
b) Higher collateral quality reduces lending risks
c) Collateral quality has no impact on lending risks
d) Collateral quality only affects the loan term
