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If the depth of the pool is 1.25%, the bank has set aside 1.25% of _______________to offset the potential charge-off of loans in the future.

If the depth of the "pool" is 1.25%, the bank has set aside 1.25% of _______________to offset the potential charge-off of loans in the future.

Group of answer choices

  1. non-accruing loans
  2. the bank would set aside 1.25% of all of these items
  3. performing loans
  4. past due loans

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