Question: the banks provisions for bad and doubtful debt amount to...
Question details
The bank's provisions for bad and doubtful debt amount to $20 million. The bank writes off $18 million non-performing loans.
As a result of the write off, the gross loans ___________________, the net loans _____________________ and bank's equity _______________.
| A. |
decreases by $18 million; decreases by $18 million; does not change. |
|
| B. |
decreases by $20 million; decreases by $18 million; decreases by $2 million. |
|
| C. |
does not change; decreases by $2 million; decreases by $2 million. |
|
| D. |
decreases by $18 million; does not change; does not change. |
|
| E. |
decreases by $18 million; increases by $18 million; does not change |
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