Banks attempt to screen good credit risks from bad to reduce the incidence of loan defaults.To do this,banks

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Banks use multiple methods to screen good credit risks from bad. These methods include specializing in lending to certain industries or regions, writing restrictive covenants into loan contracts, and expending resources to acquire accurate credit histories of their potential loan customers. Therefore, the best choice is D, which includes all of the above options.

Banks Attempt to Screen Good Credit Risks from Bad to Reduce