Which of These Is NOT a Way Financial Institutions Reduce

question 292

Multiple Choice

Which of these is NOT a way financial institutions reduce risk?

• A) performing credit checks on borrowers
• B) diversifying funds
• C) collecting information helpful for risk assessment
• D) guaranteeing a high rate of return for all lenders

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of innovations.

Shift

In economics, a change in the position of a demand or supply curve on a graph, indicating a change in the quantity demanded or supplied at every price.

Economic Growth

An increase in the production of goods and services over a specific period, often measured as the rate of increase in gross domestic product (GDP).

Shift

A change in the position of a demand or supply curve on a graph, indicating a change in the quantity demanded or supplied at any given price.