Your Bear Co$.$ is a company that makes teddy bears. It applies for a loan from First to expand its business. Which of the following most accurately Your Bear Co$.$ is a company that makes teddy bears. It applies for a loan from First to expand its business.

Which of the following most accurately explains why the bank conducts valuation analysis of Your Bear's assets and assesses its liquidity?

$-$ The bank wants to assess Your Bear's collateral to evaluate its credit risk.

$-$ The bank is trying to assess Your Bear's capacity to evaluate its interest rate risk.

$-$ The bank needs to assess Your Bear's capital to evaluate its credit risk.

$-$ The bank is trying to assess Your Bear's operational risk.