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Questions

Which ratio is used to assess the short-term risk of over-indebtedness under the Consumer Code?

The debt ratio
The liquidity ratio
The savings capacity
The solvency ratio

Which life events can affect a client's financial situation under French law?

Job loss
Divorce
Retirement
Real estate purchase

What mechanism can be recommended to a client in a critical situation of over-indebtedness?

Secure investments
The Over-indebtedness Commission of the Banque de France
An additional loan
A life insurance policy

What are the quantitative indicators used to analyze an individual client's insolvency?

Debt ratio
Liquidity ratio
Savings capacity
Rate of return

The manifest inability of a natural person acting in good faith to meet their debts.

Click to see answer

The ability to bear capital losses must be assessed before any investment recommendation under MiFID II.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Regular income
Debts
Divorce
Real estate assets
Categories:

Financial resources

Financial liabilities

External factors

A client whose debt ratio is below one is considered solvent under the Consumer Code.

True
False