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    Question

    Which strategic move increases non-interest income

    without increasing lending risk?
    A Increasing loan portfolio Correct Answer Incorrect Answer
    B Raising deposit rates Correct Answer Incorrect Answer
    C Expanding fee-based advisory services Correct Answer Incorrect Answer
    D Reducing CASA ratio Correct Answer Incorrect Answer
    E Lowering processing fees Correct Answer Incorrect Answer

    Solution

    Fee-based services generate revenue without increasing credit exposure.  Why Other Options Are Incorrect • A: Increases credit risk. • B: Increases cost. • D: Negative indicator. • E: Reduces income.  Banking Example: Wealth management advisory fees.

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