What are the advantages and disadvantages of implementing credit scoring within a financial institution?THESE QUESTIONS REQUIRE YOU TO STATE WHICH OF THESE ITEMS BELONG TO ADVANTAGE OR DISADVANTAGE. (ANSWER A – ADVANTAGE / B – DISADVANTAGE) *

Q: HOW DOES INTEREST RATE AFFECT THE FINANCIAL MARKET AND FINANCIAL INSTITUTIONS

A: Interest rate is the rate of interest which is charged on borrowings in the economy.

Q: xplain the functioning of different players in financial market.

A: Financial Market In general, a financial market is a market where we can sell and buy securities.…

Q: Could you explain the relationship between money, credit, and financial firms? Explain

A: A financial institution (FI) is a firm that deals with financial and monetary transactions such…

Q: . is modifying the firm's credit collection policy with its customers Select one: a.Financial…

A: Credit Collection Period represents the average time taken to collect trade debts by the firm from…

Q: what makes credit important to the business?

A: Credit can be the amount of money a business can borrow or can be termed as the ability of that…

Q: What is the impact of the credit and collection functions on the other parts of a business (or on…

A: Credit refers to the debt and loan that is provided by the company to others at a certain rate of…

Q: Give the most important things from the topic of Non-banking financial institutions

A: Solution-        A Non-Banking financial Institution-(NBFI) could be a establishment that doesn't…

Q: Identify the major types of Off-Balance Sheet (OBS) activities engaged by a financial institution…

A: Off balance sheet is the type of balance sheet where company does not reveal any information…

Q: Describe how financial intermediationand financial innovation affect bankingand the economy

A: Financial institutions refer to institutions that offer financial services in the financial market.…

Q: Subject: UBFB2023 CREDIT AND LENDING ANALYSIS

A: Credit assessment means checking the creditworthiness of the borrower. Banks carry out proper…

Q: Which of the following pairs of financial statement analysis tool will be given more emphasis by a…

A: Trade credit and sale on account to new customers relates to short term Liquidity.  If short term…

Q: Which of the following roles is considered a main objective of credit rating agencies? a. Granting…

A: A credit rating agency examines a debtor's ability to repay the debt by making timely principal and…

Q: Which of the following can be considered as financial institutions in a good financial system? a.…

A: Organisation which provide any type of financial services is considered as financial institutions.

Q: Building a good credit rating is integral to which of the following? Ability to have access to…

A: Meaning: Credit rating is the measurement of the past performance of a company related to loans and…

Q: Essay about the importance of credit to country

A: Credit- Credit means loans. Credit plays a vital role in the economic development of any country.…

Q: Outline the factors which led to the Credit Crunch.

A: A credit crunch is a decrease in bank lending induced by an unexpected lack of funds. During…

Q: Define the Credit Risk and include in your discussion examples of the Credit Risk and why Financial…

A: A large number of financial transactions take place in the financial system and each transaction…

Q: Why do credit ratings change? How can these changes affect investors?

A: Credit ratings are assigned on the basis of extensive economic analysis by the credit rating…

Q: Which of the following is related to conditions of credit? a. Competition b. Integrity c. Management…

A: Meaning of Credit -It is a term used in the contract that states a person provides a loan or advance…

Q: What are the different types of financial institutions? Include a description of the main services…

A: A financial institution (FI) is a company engaged in the business of dealing with financial and…

Q: Explain in detail the secondary function of banks.  Be able to cite examples for each function

A: Banks are one of the most important financial institutions. A bank performs a host of functions and…

Q: What are the four elements of a firm’s credit policy? To what extent canfirms set their own credit…

A: An organization generates its revenue from sales. Sales may be cash sales or on credit. When the…

Q: what are the principal types of credit scoring models.

A: Credit score is referred as a number range from 300 to 850 which determines the creditworthiness of…

Q: Explain the purpose of credit rating. Explain the variables of industry analysis, which is the first…

A: The question based on the need and process of credit rating. Credit rating is process to check the…

Q: Accounting Write two types of financial institutions and explain about them?

A: Explanation of Concept Financial institution are the company which provide the financial services…

Q: Describe the nature of the basic services of financial institutions.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Do you believe Credit Ratings Agencies face a moral hazard based on their Issuer-Par business model?…

A: Credit rating agencies are the institutions which rate the solvency status and debt burden capacity…

Q: why is it important for finance student to understand credit and collection management and its steps…

A: Financial management is a study and methods to manage the inflow and outflow of funds of a company.…

Q: What can you do to build and maintain your credit rating? Why is this important

A: Credit score is used to assess the quality of the credit of the borrower And it is based on 4…

Q: Explain into detail some of the difficulties associated with the financial system.

A: Financial system is the system developed or created by various financial institutions such as banks,…

Q: Define credit risk and its implications for banks and other financial institutions as well as ways…

A: Credit Risk means risk which is faced by the Banks and Financial Institutions who lend money to…

Q: What are the four elements of a firm's credit policy?

A: 4 element of the firm’s credit policy are: Credit period The length of the time buyers that are…

Q: Suppose you are the marketing manager of the credit card department of a financial institution.…

A: Market penetration strategy can be defined as the successful selling of a product or service into a…

Q: Finance

A: Introduction: Commercial banks are banks where majority of the people both individuals &…

Q: is the meaning of Financial Markets? Name and differentiate all the types of financial markets

A: Step 1   Financial markets contribute to the smooth operation of economies by allocating resources…

Q: How does a lower credit rating affect borrowers lenders and financial institution? What are the…

A: The credit rating is a measurement of the creditworthiness of the borrower. In the capital market,…

Q: Credit Ratings Agencies face a moral hazard based on their Issuer-Par business model. Why is this…

A: Credit Ratings have always faced the ethical dilemma of having to provide credit for the issuer and…

Q: which of the financial institutions would you intend to seek employment and build your career?

A: Solution- Step (1)- If you're employed in finance you could be concerned in investing money,…

Q: What are the difficulties associated with the financial system and how these challenges can be…

A: Financial system is undergoing a significant change with the advancement of technology. It has…

Q: If there is no asymmetric information problem from the perspective of lenders and borrowers, is the…

A: Financial market is the place where investors invest their funds in various securities and companies…

Q: Briefly explain 3 methods to control credit risk within a financial institution

A: The probability of a loss resulting from a borrower's failure to repay a loan or meet contractual…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.