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      Question

      Which of the following banks will not carry any credit

      risk?
      A Universal Banks Correct Answer Incorrect Answer
      B Foreign Banks Correct Answer Incorrect Answer
      C Small Finance Banks Correct Answer Incorrect Answer
      D Payment Banks Correct Answer Incorrect Answer
      E Regional rural banks Correct Answer Incorrect Answer

      Solution

      Payment banks do not engage in lending activity. Β  As such, they are not exposed to credit risk or default risk.

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