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.	decrease by $34 million; decrease by $34 million; decreases by $8 million.
	B.	increase by $34 million; decrease by $26 million; decreases by $8 million
	C.	decrease by $26 million; decrease by $26 million; does not change.
	D.	do not change; decrease by $26 million; does not change.
	E.	decrease by $26 million; decrease by $34 million; decreases by $8 million.

Consider a bank's statement of financial performance.

Which of the following statements is NOT correct?

	A.	The building up of lending provisions lowers profit.
	B.	The realized capital gains on available-for-sale securities is recorded in non-interest income.
	C.	The part of the profit that is not distributed as dividends is retained profits.
	D.	Non-interest income are usually larger than non-interest expenses.
	E.	Write-off of loans in absence of lending provisions is recorded as a negative income in non-interest income.