Question
The bank writes off $34 million non-performing loans. The bank's provisions for bad and doubtful debt (lending provisions) amounted to $26 million. As a result
The bank writes off $34 million non-performing loans. The bank's provisions for bad and doubtful debt (lending provisions) amounted to $26 million.
As a result of the write off, the lending provisions ___________________, the gross loans _____________________ and bank's equity _______________.
A. | do not change; decrease by $26 million; does not change. | |
B. | decrease by $34 million; decrease by $34 million; decreases by $8 million. | |
C. | decrease by $26 million; decrease by $26 million; does not change. | |
D. | decrease by $26 million; decrease by $34 million; decreases by $8 million. | |
E. | increase by $34 million; decrease by $26 million; decreases by $8 million |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started