Banks Attempt to Screen Good Credit Risks from Bad to Reduce

question 58

Multiple Choice

Banks attempt to screen good credit risks from bad to reduce the incidence of loan defaults.To do this,banks

• A) specialize in lending to certain industries or regions.
• B) write restrictive covenants into loan contracts.
• C) expend resources to acquire accurate credit histories of their potential loan customers.
• D) do all of the above.

---

Definitions:

QuickBooks Online

A cloud-based accounting software that allows users to manage their financial records online from any device with Internet connectivity.

Accountant Versions

Variants of software or tools specifically tailored for use by professional accountants, including advanced features for accounting, auditing, and financial analysis.

QuickBooks Online Accountant

A cloud-based accounting solution designed specifically for accountants to manage their clients' finances and accounts.

Financial Services

Services provided by the finance industry, including banking, insurance, investment, and other financial activities.