New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    By keeping a maximum exposure limits on a sector, a bank

    is trying to minimise -
    A Credit Risk Correct Answer Incorrect Answer
    B Market Risk Correct Answer Incorrect Answer
    C Operational Risk Correct Answer Incorrect Answer
    D Off-Balance sheet Risk Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Caps on sectors increases diversification of the credit exposure and reduces credit risk, the risk of default.

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