The objective of bank management is to

Question

Quizplus · Accepted Answer

Bank management is responsible for balancing profitability with safety. They should make investments and give loans that will generate profit but must also ensure that these investments and loans are not so risky that they compromise the overall safety and stability of the bank. As such, bank management should not make risky investments or give loans to borrowers who cannot repay them, nor should they limit loans only to the safest borrowers. Investing in only U.S. government securities and making loans only to established businesses may limit profitability. Thus, D, striking the appropriate balance between profitability and safety, is the best choice.

The Objective of Bank Management Is to