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Banks Often Make Loans to Officers, Directors, Employees, and Principal

Question 426

Multiple Choice

Banks often make loans to officers, directors, employees, and principal shareholders. Discloser of these related-party transactions is required:


A) If they are material to the loan portfolio
B) In relation to total stockholder's equity
C) If they are presented as other liabilities
D) Either A or B

Correct Answer:

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