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Which of the following statements is TRUE? Select one: a. Charging a higher interest rate on loans to high-risk borrowers is not a good strategy

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Which of the following statements is TRUE? Select one: a. Charging a higher interest rate on loans to high-risk borrowers is not a good strategy to manage credit risk b. Lower leverage of a borrower increases the credit risk to the bank c. Covenants in loan contracts help the bank to monitor and control credit risk of borrowers d. All of the other statements are true

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