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Credit risk is the risk that a borrower will default on a loan.All of the following are ways that banks attempt to manage credit risk
Credit risk is the risk that a borrower will default on a loan.All of the following are ways that banks attempt to manage credit risk except?
a)Require collateral to back the loan.
b)Diversify the loan portfolio by either geographic location or type of loan (business vs consumer0.
c)Credit analysis using credit scores.
d)Relationship banking.
e)All are examples of how banks try to manage credit risk.
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