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2014 - Apr - Q3 - vi

B

bdeyal89

Member
Good day,

The question states "explain how LIC will use credit ratings when issuing mortgages", and the answer seems to mainly focus on how credit ratings are derived.

I understand all the material in the answer, im just a bit worried because it would have never occured to me to go into that level of detail. I merely wrote "credit rating are a measure, both subjective and objective, of a comany's ability to service its debt".

How can i avoid making this mistake in the exam? Thanks.
 
I find it not uncommon.. another example is Q&A3.12(i)..

The question asks "why" but the majority of solutions answers by defining what is normal/disaster/catastrophe capital and the cost of capital..

I am struggling in this kind of situation too.. So any help will be extremely helpful!
 
Hi. Colin is currently away and I'm sure he'll reply as soon as possible.

I'm not familiar with the questions, but unfortunately sometimes questions are not ideally worded! We'll take on board any feedback about ActEd questions. Sometimes the number of marks available is a clue - if there a lot of marks available for what appears to be a simple question and answer then it is a clue that you need to go into more depth.
 
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