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      Question

      A bank expanding into agricultural financing to meet

      regulatory lending norms is primarily responding to:
      A Market competition Correct Answer Incorrect Answer
      B Profit maximization Correct Answer Incorrect Answer
      C Priority Sector Lending requirements Correct Answer Incorrect Answer
      D Product life cycle Correct Answer Incorrect Answer
      E Brand positioning Correct Answer Incorrect Answer

      Solution

      Banks must allocate certain percentage of loans to priority sectors. Why others are incorrect: Competition may exist but compliance is key; Profit motive secondary; PLC relates to product stage; Positioning relates to image. Banking Example: Increasing Kisan Credit Card portfolio.

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