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Exam 2016-FRR Topic 1 Question 325 Discussion

Actual exam question for GARP's 2016-FRR exam
Question #: 325
Topic #: 1
Which of the following statements is a key difference between customer loans and interbank loans?

Suggested Answer: A Vote an answer

The key difference between customer loans and interbank loans is related to creditworthiness and yield.
Customers are generally less credit-worthy than banks, leading to higher yields on customer loans compared to interbank loans. This higher yield compensates lenders for the increased risk associated with lending to less credit-worthy borrowers.

by Marian at Sep 09, 2024, 10:04 AM

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