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From viewpoint of ABZ Bank, (i) explain the trade-off of imposing interest rate cap for mortgage loan. (5 marks) (ii) explain TWO reasons why mortgage

From viewpoint of ABZ Bank,

(i)

explain the trade-off of imposing interest rate cap for mortgage loan. (5 marks)

(ii)

explain TWO reasons why mortgage loan is more preferred than credit card loans.

(4 marks)

(iii)

explain the trade-off for expanding mortgage refinancing. (4 marks)

(iv)

identify and explain briefly TWO common weaknesses of ratio analysis and Altman-Z score in assessing credit risk of commercial & industrial loans. (4 marks)

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