A Common Method for Banks to Reduce Their Default Risk

question 80

Multiple Choice

A common method for banks to reduce their default risk is to

• A)specialize in loans to just one or a few particular industries in which they have expertise in assessing creditworthiness.
• B)specialize in loans of companies whose earnings patterns are quite similar over time.
• C)A and B
• D)none of the above

---

Definitions:

Anterior Cruciate Ligament

A key ligament located in the knee, crucial for stabilizing the joint during movement.

Lateral Ligament

A band of tissue located on the lateral (side) part of a joint that helps stabilize and limit the movement of the joint.

Range Of Motion

The full movement potential of a joint, usually its range of flexion and extension; an important measurement in assessing joint functionality.

Plantar Calcaneonavicular Ligament

A supportive band of tissue found in the foot that helps maintain the arch and provides stability to the foot during movement.