The doctrine that the first priority of a bank is to make loans to all those customers from whom the bank expects to receive positive net earnings is called the:
A)funds management doctrine.
B)customer relationship doctrine.
C)loan priority doctrine.
D)revenue flows doctrine.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

The doctrine described is known as the customer relationship doctrine, which prioritizes making loans to customers who are expected to bring in a positive net return for the bank. This approach prioritizes building and maintaining strong relationships with customers while also considering the bank's profitability.

The Doctrine That the First Priority of a Bank Is