I cannot understand the question and the asnwer of Q9.D part.
Quetion:.Winthrop Bank
Winthrop Bank is a commercial bank with operations in North America. Evaluate the effect of each of the following scenarios on the bank’s investment objectives, constraints, or risk-taking ability.
D.More opportunities exist for expanding net interest margins with low risk in Winthrop’s loan portfolio than in its securities portfolio.
Answer
.The development suggests taking less risk in its securities portfolio.
Quetion:.Winthrop Bank
Winthrop Bank is a commercial bank with operations in North America. Evaluate the effect of each of the following scenarios on the bank’s investment objectives, constraints, or risk-taking ability.
D.More opportunities exist for expanding net interest margins with low risk in Winthrop’s loan portfolio than in its securities portfolio.
Answer
.The development suggests taking less risk in its securities portfolio.