(a) Relies on the subjective judgment of trained professionals (b) is the more senior the officer the greater his/her decision-making power (c) Are interpreting industry trends, assessing a borrower's financial condition (d) All of the above (c) Statement (a) and (c) are correct 7. Classic Credit analysis is valuable but problematic (a) Classic credit analysis has made banks into a true sense of security (b) Credit officers take a company's financial statements and rewrite them in the format of their institution prefers (e) The larger the institution, the lower the risk posed by human factors (d) When an institution requires too many approvals on a loan, no single individual may take responsibility for the decision that is made (e) Statement (a) & (d) are correct ( Statement (b) & (e) are correct 8. Credit concentrations can further be grouped roughly into two categorica (a) Conventional credit concentrations would include concentrations of credits to single borrowers or counterparties, a group of connected counterparties, and sectors or industries, such as commercial real estate, and oil and gas. (b) Concentrations based on common or correlated risk factors reflect biler or more situation-specific factors, and often can only be uncovered through wnalysis (c) Conventional credit concentration based on multiple credits to single credits and sectors as commercial real estate and oil and gas (d) Statement (a) & (b) are correct (c) Statement (b) & (c) are correct 9. Smaller, locally focused commercial and savings banks that offer arrower but more personalized menu of financial services are known as: (a) Money-center banks. (b) community banks (c) Mutual funds (d) state banks (e) Fringe banks 10. Nick Rodr gets a loan from the First State Bank of Guthrie to purchase a new refrigerator for his condo. What service that a bank provides is he taking advantage of? (8) Risky arbitrage services (b) Liquidity services (c) Delegated monitoring services (d) Divisibility of money services (e) Credit services