Question

Which of the following best describes the term 'high street banking'?

• A. When banks prefer non-retail lending.
• B. When banks prefer retail lending over corporate lending.
• C. When banks prefer risk-free short-term retail lending.
• D. When banks are found to lend to less creditworthy borrowers at high interest rates.

Answer 1

The correct option is B When banks prefer retail lending over corporate lending.

Such loans are preferred by banks when corporate sector in an economy does not remain much creditworthy due to either slowdown or recession.