Credit risk is best managed through the wise use of which of the following?
A)diversification and expert analysis
B)futures and options
C)nondeposit liabilities
D)securitizations

Question

Quizplus · Accepted Answer

Diversification and expert analysis are the best ways to manage credit risk. Diversification reduces the concentration of credit risk in a single borrower or industry, while expert analysis helps to identify potential risks and opportunities to manage credit risk effectively. Futures, options, nondeposit liabilities, and securitizations may also be useful tools in credit risk management, but they are not the best options for managing credit risk.

Credit Risk Is Best Managed Through the Wise Use of Which