IIA
IIA-CFSA · Question #150
All lending institutions assume some loans will not be repaid and thus estimate the losses they expect from their loan portfolio. Management of the lending institution sets a reserve for loan losses…
The correct answer is D. All of these. See the full explanation below for the reasoning.
Question
All lending institutions assume some loans will not be repaid and thus estimate the losses they expect from their loan portfolio. Management of the lending institution sets a reserve for loan losses at a given point based on factors such as:
Options
- AThe number and type of loans made
- BThe quality of loans made
- CThe number of problem loans
- DAll of these
How the community answered
(55 responses)- A7% (4)
- B15% (8)
- C4% (2)
- D75% (41)
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