Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 3 of 9

The degree of likelihood that the borrower of a loan will not be able to make the necessary scheduled principal and interest payments is referred to as:

A. Default probability.
B. Loss given default.
C. Present value of expected loss.

User Contributed Comments 0

You need to log in first to add your comment.
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain expected exposure, the loss given default, the probability of default, and the credit valuation adjustment;

CFA® 2025 Level II Curriculum, Volume 4, Module 29.