n each pair below, indicate which asset exhibits the greatest credit risk. Describe why. a. Commercial loan to a Fortune 500 company or a loan to a corner grocery store b. Commercial loans to two businesses in the same industry; one is collateralized by accounts receivable from sales, while the other is collateralized by inventory as work-in-process c. Five-year Baa-rated municipal bond or a five-year agency bond from the Federal Home Loan Bank system d. One-year student loan (college) or a one-year car loan

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A:

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