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Basic Question 6 of 12

Which risk does asset quality cover?

A. interest rate risk
B. credit risk
C. liquidity risk

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain the CAMELS (capital adequacy, asset quality, management, earnings, liquidity, and sensitivity) approach to analyzing a bank, including key ratios and its limitations;

analyze a bank based on financial statements and other factors;

CFA® 2025 Level II Curriculum, Volume 2, Module 13.