One Reason a Bank's Officer May Be Reluctant to Write

question 65

Multiple Choice

One reason a bank's officer may be reluctant to write off a past-due loan is that it will:

• A) increase the bank's liabilities.
• B) decrease the bank's assets and capital.
• C) increase the bank's liabilities and assets, requiring more capital to be held.
• D) make the bank's accounts less transparent.

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