Which of the Following Is NOT a Method Banks Use

question 36

Multiple Choice

Which of the following is NOT a method banks use to control credit risk?

• A) specialization
• B) credit rationing
• C) gap analysis
• D) collateral requirements

---

Definitions:

Serial-Order Effect

The psychological phenomenon that the order of information presentation affects memory recall, often seen in lists or sequences.

Depth of Processing

A concept in cognitive psychology that describes the level at which information is thought about, where deeper levels of analysis lead to better memory retention.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often associated with prolonged alcoholism.

Retroactive Interference

A memory phenomenon where newly learned information interferes with the recall of previously learned information.