Which of the Following Is the Reason Banks Are Usually

question 96

Multiple Choice

Which of the following is the reason banks are usually more concerned about downside risk than upside gain?

• A) Banks generally are very risk averse and try to minimize any possible level of risk.
• B) Banks are highly regulated,and therefore they have to manage their risk very efficiently.
• C) If the firm does poorly,the bank could lose the entire value of its loan,but if the firm does incredibly well,the bank simply gets its loan back plus interest.
• D) If the firm does poorly,the bank could lose the entire value of its loan,but if the firm does incredibly well,the bank would also receive higher return.

---

Definitions:

Completing Business Message

The final step in business communication, ensuring the message is clear, concise, and ready for delivery to the intended audience.

Writing Phase

The writing phase is a stage in the process of creating written content where ideas are developed and articulated into a coherent text.

Three-Step Writing Process

A structured approach to writing that includes planning, drafting, and revising to produce effective written communication.

Specific Purpose

The particular goal or intention behind a speech, presentation, or written document.