If a Bank Is Too ____ in Attempting to Avoid

question 18

Multiple Choice

If a bank is too ____ in attempting to avoid loan losses, its net interest margin will be ____.

• A)conservative; high
• B)conservative; low
• C)aggressive; high
• D)aggressive; low
• E)none of the above

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Definitions:

Corporate Stock

Shares representing ownership in a corporation, with holders often entitled to receive dividends and vote on corporate matters.

Shareholder

A person or entity that owns part of a company through the possession of one or more shares of its stock.

Director

A person elected by the shareholders to direct corporate affairs.

Corporate Affairs

Activities and responsibilities related to the operation and management of a corporation, including compliance, governance, and public relations.