Question: 1.If a customer cannot repay a loan, the NBFI makes a loss of 10m, describe the movements (in accounting terms) on the NBFI's financials to

1.If a customer cannot repay a loan, the NBFI makes a loss of 10m, describe the movements (in accounting terms) on the NBFI's financials to reflect this loss.

2.Describe the principal lines of business for Securities firms.

3.How is the double leverage ratio calculated? Explain why double leverage ratio should be considered for Securities firms.

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