Post Utme Skyline University 2020 Commerce Question 40

Practice objective / multiple choice question 40 from the 2020 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2020 Commerce Objective / Multiple Choice
Question 40 POST_UTME_SKYLINE_UNIVERSITY • 2020 • COMMERCE • objective

A bank is considering a new loan product that would offer a higher interest rate to customers who agree to make regular payments. What are the potential benefits and drawbacks of this product, and how might it impact the bank's risk profile?

Answer Options

Correct Answer A. The product would increase the bank's risk profile by attracting high-risk customers, but it could also lead to increased revenue and customer satisfaction.
B. The product would have no impact on the bank's risk profile.
C. The product would decrease the bank's risk profile by attracting low-risk customers.
D. The product would increase the bank's revenue and customer satisfaction, but it could also lead to decreased customer loyalty.
Correct Answer
A
Correct Option:
The product would increase the bank's risk profile by attracting high-risk customers, but it could also lead to increased revenue and customer satisfaction.

About This Question

This is Post Utme Skyline University 2020 Commerce Question 40. It is one of the objective questions from the 2020 Post Utme Skyline University Commerce examination.

View More Post Utme Skyline University 2020 Commerce Questions More Post Utme Skyline University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support