Economics · Economy
Which of the following is a fundamental characteristic of retail banking that allows for effective risk dispersion?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Focusing customer acquisition strictly on high net-worth individuals
- 2Exclusive reliance on high-value collateralized real estate lending
- 3A large number of borrowers with small individual credit exposure✓
- 4High profit margins on each individual transaction
Correct answer
A large number of borrowers with small individual credit exposure
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