The ratio gives actual losses on loans, while the ratio gives the extent to which the bank's assets are devoted to loans. A. loan risk; loss rate B. loss rate; capitalization C. operating efficiency; loan risk D. loss rate; loan risk Decreasing the amount of liquid assets held for the purpose of meeting loan demands and deposit withdrawals and increasing the usage of deposit and nondeposit sources of funds paying market rates of interest is known as: A. liquidity management B. leverage adjustment C. liability management D. liquidity adjustment To obtain net loans from gross loans the following items must be subtracted: A. unearned income B. reserve for loan losses C. all loans in arrears D. unearned income and reserve for loan losses Which of the following accurately describes the other real estate owned that appears as an asset on the bank's balance sheet? A. usually represents property obtained through foreclosure on problem loans B. includes premises and equipment C. is limited to the equipment owned by the bank D. includes only the land owned by the bank