Which of the following statement is correct?

Select one:

a.

When the repayment probability of a loan is equal to one, the financial institution investing in this loan faces high credit risk.

b.

An increase in the repayment probability of a loan leads to an increase in the default probability.

c.

Losses on corporate loans are first compensated by deposit holders of the financial institution.

d.

None of the other statements is correct.