Which of the following items is considered a low-quality asset?

Question

Quizplus · Accepted Answer

An asset in nonaccrual status is considered a low-quality asset as it means the borrower is not making payments and it is unlikely that the bank will receive the full principal amount. Option B is considered a delinquent loan but not necessarily low quality. Option C indicates that the bank is proactively managing the asset, and it may or may not be low quality depending on the specific circumstances.

Which of the Following Items Is Considered a Low-Quality Asset