Post Utme Rhema University 2021 Commerce Question 10

Practice objective / multiple choice question 10 from the 2021 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2021 Commerce Objective / Multiple Choice
Question 10 POST_UTME_RHEMA_UNIVERSITY • 2021 • COMMERCE • objective

A bank's risk management strategy involves diversifying its investments to minimize potential losses. What is the primary benefit of diversification in risk management?

Answer Options

A. To increase potential returns on investment.
Correct Answer B. To minimize potential losses.
C. To reduce the risk of default by borrowers.
D. To increase the bank's liquidity.
Correct Answer
B
Correct Option:
To minimize potential losses.

About This Question

This is Post Utme Rhema University 2021 Commerce Question 10. It is one of the objective questions from the 2021 Post Utme Rhema University Commerce examination.

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