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    Question

    Which of the following best describes credit risk

    mitigation?
    A Writing off loans Correct Answer Incorrect Answer
    B Increasing interest rates Correct Answer Incorrect Answer
    C Taking collateral or guarantees Correct Answer Incorrect Answer
    D Approving higher limits Correct Answer Incorrect Answer
    E Delaying disbursement Correct Answer Incorrect Answer

    Solution

    Credit risk mitigation involves reducing the lender’s potential loss through security, guarantees, or insurance.

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