Statement: By learning from the past experiences of banks' increasing non-performing assets, it is vital to take appropriate actions to avoid bad debts from occurring again. Courses of Action: Before issuing a loan to a customer, their creditworthiness should be thoroughly assessed.To guarantee that loan instalments are paid on time, the work for which the loan was given should be closely monitored on a regular basis.
A. Only I follows
B. Only II follows
C. Either I or II follows
D. Both I and II follow
Answer:D
Statement: By learning from the past experiences of banks' increasing non-performing assets, it is vital to take appropriate actions to avoid bad debts from occurring again. Courses of Action: Before issuing a loan to a customer, their creditworthiness should be thoroughly assessed.To guarantee that loan instalments are paid on time, the work for which the loan was given should be closely monitored on a regular basis.
A. Only I follows B. Only II follows C. Either I or II follows D. Both I and II follow
Explanation: To ensure that debts are repaid on time, the customer's needs and future prospects should be analysed, and their work should be verified on a regular basis. As a result, both courses are followed.