Credit Risk Management Quiz

Providing loans to high-risk borrowers

Minimizing the exposure to potential losses from default (correct)

Maximizing profits through risky lending practices

Ignoring potential credit risks

To increase the profitability of the bank

To identify potential defaulters (correct)

To ignore potential credit risks

To attract high-risk borrowers

To ignore potential credit risks

To avoid providing loans to high-risk borrowers

To minimize potential losses from default (correct)

To maximize profits through risky lending practices