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How do banks manage credit risk? A. Banks can manage credit risk by diversifying their assets. B. Banks can manage credit risk by performing credit
How do banks manage credit risk?
A.
Banks can manage credit risk by diversifying their assets.
B.
Banks can manage credit risk by performing credit risk analysis, requiring borrowers to put up collateral, and using credit rationing.
C.
Banks can manage risk by creating long-term business relationships by which the bank could acquire information about the creditor.
D.
All of the above are correct.
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