Economics · Banking System
To which category of consumers do commercial banks provide 'subprime lending'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Non-resident individuals seeking agricultural micro-loans
- 2Premium high-net-worth customers who are preferred by the bank
- 3Borrowers who offer institutional government securities as collateral
- 4Borrowers with weak credit histories and higher risk of default✓
Correct answer
Borrowers with weak credit histories and higher risk of default
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