After a loan is approved, it will continuously be monitored so that

Question

Quizplus · Accepted Answer

After a loan is approved, it will continuously be monitored to detect any potential problem loans early on, which helps prevent future liquidity problems. It will also ensure that regulatory requirements concerning the accuracy of the loan loss reserves are met. Therefore, both options A and B are true. The reserve requirements or deposits can be more accurately estimated through the monitoring process as well. Therefore, option D is the correct answer. Option E includes all of the above, which is technically correct, but option D gives a more specific answer.

After a Loan Is Approved, It Will Continuously Be Monitored