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Question
If the amount lost per dollar on a defaulted loan is 40 percent, then a bank that does not permit the loss of a loan to exceed 10 percent of its bank capital should set its concentration limit (as a percentage of capital) to
A. 5 percent.
B. 15 percent.
C. 25 percent.
D. 30 percent.
E. 50 percent.
Answer
This answer is hidden. It contains 84 characters.
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