1. The commitment that the borrower provides to the project is part of:

a.Collateral

b.Capacity

c.Character

d.Condition

2. When loans are not performing, the last actions that lenders take is:

a.Workout situation

b.Remedial actions

c.Prior appropriate planning

d Write-off the loan amount

3.The risk of loss through the default on financial obligations is known as:

a.Market risk

b.Organizational risk

c.Credit risk

d. Default risk