Which of the following is (are) NOT a disadvantage to parameterizing a credit risk model?
　　A. I only.
　　B. I and II only.
　　C. II and III only.
　　D. III only.
　　Answer:D
　　Statement I is incorrect because private borrowers cannot cross check with public rating agencies. Statement II is a disadvantage to parameterizing credit risk models since any one bank only views its own loss history and not the population of loan losses. Statement III is correct and so the observable nature of commitments outstandings is a straightforward factor to parameterize.