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    • Question

      If a bank increases loan portfolio without strengthening

      risk assessment, it risks damage to:
      A Brand equity Correct Answer Incorrect Answer
      B Cost structure Correct Answer Incorrect Answer
      C Market development Correct Answer Incorrect Answer
      D Distribution network Correct Answer Incorrect Answer
      E Product diversification Correct Answer Incorrect Answer

      Solution

      High defaults harm reputation and customer trust. Why others are incorrect: Cost structure secondary; Market development unrelated; Distribution unaffected; Diversification not primary risk. Banking Example: Rising NPAs damaging brand image.

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