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    Question

    Which of the following is considered the most important

    principle in lending according to the Principles of Lending?
    A Profitability Correct Answer Incorrect Answer
    B Safety Correct Answer Incorrect Answer
    C Liquidity Correct Answer Incorrect Answer
    D Diversification of Risks Correct Answer Incorrect Answer
    E Purpose Correct Answer Incorrect Answer

    Solution

    Safety is considered the most important principle of lending. It ensures that the loan granted by the bank is safe and that the funds will be repaid, minimizing the risk to the bank's capital.

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