One Way for a Bank to Deal with Credit Risk

One way for a bank to deal with credit risk is to:

A) charge all borrowers from the same industry an average rate for that industry.
B) add a mark-up for a specific borrower based on the borrower's credit history to the cost of funds.
C) avoid making loans to borrowers from a broad spectrum and to specialize geographically and in specific industries.
D) increase the number of loans made in any year.