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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