If a Bank Encounters a Loan Default the Bank Will

question 65

Multiple Choice

If a bank encounters a loan default the bank will typically

• A) write off the loan and reduce the amount of loans in that category.
• B) immediately foreclose and sue the customer.
• C) negotiate with the customer to recover at least some of its capital.
• D) reduce its loan loss reserve.

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Definitions:

First-Person Pronouns

Pronouns that refer directly to the speaker or writer, such as "I," "me," "we," and "us."

Passive Voice

A grammatical construction where the object of an action becomes the subject of the sentence, often making the sentence less direct.

References Available

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