If the value of a bank loan declines due to default, what is the corresponding reduction in a banks balance sheet? _______ A) Borrowings are reduced by the amount of the decline in the value of the loan. B) Capital is reduced by the amount of the decline in the value of the loan. C) Deposits are reduced by the amount of the decline in the value of the loan. D) Reserves are reduced by the amount of the decline in the value of the loan.