The Jennings Bank of Texas,wants to Protect Itself from Credit

Multiple Choice

The Jennings Bank of Texas,wants to protect itself from credit risk by making large loans to corporate customers,by making residential mortgages to families,by making agriculture loans to farmers and ranchers in the area,by making small business loans to business along main street and by making automobile loans for the car dealership across the street from the bank.What defense against risk is this bank making?

A) Portfolio diversification
B) Geographic diversification
C) Quality management
D) Increasing owners' capital
E) None of the options is correct.