Management of the Lending Institution Sets a Reserve for Loan

question 414

Multiple Choice

Management of the lending institution sets a reserve for loan losses at a given point based on such factors as mentioned below EXCEPT:

• A) Number and type of loans made
• B) Quality of loans made
• C) Historical loss experience
• D) Loan portfolio

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Definitions:

Swell with Water

A phenomenon where materials absorb water and increase in volume.

Marasmus

A form of severe malnutrition characterized by energy deficiency, often seen in children, leading to significant weight loss and muscle wasting.

Severe Malnutrition

Severe malnutrition is a critical condition resulting from inadequate intake of nutrients, leading to significant health problems or death.

Infant

A very young child or baby, typically under one year of age, experiencing rapid growth and development across various domains.