Question: 47If the amount lost per dollar on a defaulted loan is 50 percent, then a bank that does not permit the loss of a loan
47If the amount lost per dollar on a defaulted loan is 50 percent, then a bank that does not permit the loss of a loan to exceed 20 percent of its bank capital should set its concentration limit (as a percentage of capital) to
a.
40 percent.
b.
15 percent.
c.
5 percent.
d.
50 percent.
e.
25 percent.
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