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Question 4 (a) Describe the THREE (3) issues that a financial institution will have to consider when assessing credit risk from a single counterparty.

Question 4 (a) Describe the THREE (3) issues that a financial institution will have to consider when assessing credit risk from a single counterparty. (9 marks) (b) Discuss how 'credit quality' can affect the counterparty to perform an obligation. (8 marks) (c) Differentiate between credit ratings used by banks in relation to those used by others. (8 marks)

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