I. Guidelines & policies around loss-given-default (LGD) and recovery rates are location and lender-specific, however, leases generally have ______ LGD compared to term loans. Which word best fits in the blank?

A. A higher

B. A lower

C. An equal

II. A lenders aggregate exposure is generally higher under a ________ _________ compared to a term loan. Fill in the blank. (Hint: 2 words)

Answer I and II. Thank you!!!