The Jennings Bank of Texas wants to protect itself from credit risk by making la
ID: 2716120 • Letter: T
Question
The Jennings Bank of Texas wants to protect itself from credit risk by making large loans to corporate customers, by making residential mortgages to families, by making agriculture loans to farmers and ranchers in the area, by making small business loans to business along main street and by making automobile loans for the car dealership across the street from the bank. What defense against risk is this bank making?
Increasing owners’ capital
Quality management
Geographic diversification
Portfolio diversification
All of the other responses are correct
A.Increasing owners’ capital
B.Quality management
C.Geographic diversification
D.Portfolio diversification
E.All of the other responses are correct
Explanation / Answer
D) Portfolio diversification
by this redusing the rik of that bank
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