Banking Awareness - Banking Acts, Reforms & Risk Management
Concentration of loans in a single industry mainly increases which risk for banks?
Concentration of loans in a single industry mainly increases which risk for banks?
hard Q9 of 15
Step-by-Step Solution
Step 1: Identify exposure pattern
Heavy exposure to one sector raises default impact.Step 2: Match with risk category
Sectoral concentration increases credit risk.Final Answer:
Credit risk → Option AQuick Check:
Sector concentration = Higher credit risk ✅
Quick Trick: Loan concentration raises credit risk.
Common Mistakes:
MISTAKES- Linking sector concentration to liquidity risk.
Master "Banking Acts, Reforms & Risk Management" in Banking Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Banking Awareness Quizzes