GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit risk to the bank is high from which of these card -
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ATM cards
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Debit cards
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Credit cards
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All of the above
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Explanation:
Detailed explanation-1: -Credit risk is the possibility of losing a lender takes on due to the possibility of a borrower not paying back a loan. Consumer credit risk can be measured by the five Cs: credit history, capacity to repay, capital, the loan’s conditions, and associated collateral.
Detailed explanation-2: -Credit risk is considered to be higher when the borrower does not have sufficient cash flows to pay the creditor, or it does not have sufficient assets to liquidate make a payment. If the risk of nonpayment is higher, the lender is more likely to demand compensation in the form of a higher interest rate.
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