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A bank that has written loans worth $10 million makes a loan loss reserve to account for the likelihood that some of these loans will

A bank that has written loans worth $10 million makes a loan loss reserve to account for the likelihood that some of these loans will later default. Which of the below is most correct? a. If loan loss reserves are increased the aim is to ensure net loans do not change. b. If the total of loan defaults is greater than the loan loss reserves, then loan loss reserves are decreased and net loans increased. c. If the total of the loan default is greater than the loan loss reserves, reserve are increased so that net loans stay the same. d. If a loan default is less than the loan loss reserve net loans do not change

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