Generally, at the retail level, an FI controls credit risks solely by using a range of interest rates or prices and not by credit rationing.

Question

Quizplus · Accepted Answer

At the retail level, Financial Institutions (FIs) manage credit risks through a variety of methods, not just by adjusting interest rates or prices. They also use credit rationing, where they limit the amount of credit offered or deny credit to certain borrowers based on their risk profile, among other strategies.

Generally, at the Retail Level, an FI Controls Credit Risks