If the Value of Bank's Loans Declines,what Is the Corresponding

question 45

Multiple Choice

If the value of bank's loans declines,what is the corresponding reduction in a liability entry that the bank makes?

• A) Deposits are reduced by the amount of the decline in the value of the loan.
• B) Borrowings are reduced by the amount of the decline in the value of the loan.
• C) Net worth is reduced by the amount of the decline in the value of the loan.
• D) Cash items in the process of collection are reduced by the amount of the decline in the value of the loan.

---

Definitions:

Ability or Personality

Ability or personality refers to the inherent talents or traits that influence an individual's performance and how they interact within a team or organization.

Conscious Evaluation

The deliberate and mindful assessment of ideas, options, or decisions based on criteria and judgment.

Experimentation

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Non-conformity

Behaviors or actions that do not comply with prevailing norms, expectations, or standards, often viewed in the context of individualism and innovation.