If a Bank Increases Its Provisions for Loan Losses, Its

question 15

Multiple Choice

If a bank increases its provisions for loan losses, its interest income is ____, and its noninterest income is ____.

• A)reduced; not affected
• B)reduced; reduced
• C)not affected; reduced
• D)not affected; not affected

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Definitions:

Drive

An internal motivational state that compels organisms to engage in behaviors necessary to satisfy a physiological or psychological need.

Aroused

The condition of being awake and reactive to stimuli, often associated with increased physiological activity and alertness.

Incentives

External rewards or stimuli that motivate individuals to perform actions or exhibit behaviors.

Helmets

Protective headgear designed to absorb impacts or prevent injuries to the head during activities such as cycling, motorcycling, sports, or construction work.