Which of the Following Could Be Used to Reduce a Bank's

question 53

Multiple Choice

Which of the following could be used to reduce a bank's credit risk exposure?
I. Increase its loan to deposit ratio
II. Increase its allowable concentration ratio
III. Increase its required minimum credit score
IV. Participate in loans in other geographic areas

• A) I and II
• B) I, II and III
• C) I, II and IV
• D) III and IV
• E) I, II, III and IV

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Definitions:

Scientific Evidence

Information, data, or findings obtained through systematic observation, experimentation, or research that serves as a basis for making conclusions or judgments in science.

Social Interest

Involves the inclination of individuals to seek social connections, the welfare of others, and the desire to contribute to society.

Adler

Refers to Alfred Adler, an Austrian medical doctor and psychotherapist, known for founding the school of individual psychology which emphasizes the importance of feelings of inferiority and the creative self.

Overcompensate

To make up for deficiencies in one area by excelling or exaggerating in another.