Question

Which of the following is not included in credit exposure?

• A. Bridge Loans
• B. Working Capital Demand Loan
• C. Shares of the company underwritten by the bank
• D. Advances against the Banks fixed deposits granted to a company

Answer 1

The correct option is D Advances against the Banks fixed deposits granted to a company

Credit exposure is the total amount of credit made available to a borrower by a lender. Advances against the banks fixed deposit granted to the company is not included in this because it is amount which the lenders grant to the borrower.