GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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According to the risk diversification principle of bank lending, diversification should be in terms of -
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customer base
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nature of business
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geographic location
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All of these
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Explanation:
Detailed explanation-1: -Diversification is a risk management technique that mitigates risk by allocating investments across different financial instruments, industries, and several other categories. The purpose of this technique is to maximize returns by investing in different areas that would yield higher and long term returns.
Detailed explanation-2: -The lending process in any banking institutions is based on some core principles such as safety, liquidity, diversity, stability and profitability.
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