A well-managed bank tries to keep the ratio of nonperforming loans to total loans at about 8 percent to 10 percent.

Question

Quizplus · Accepted Answer

The statement is not entirely accurate as the ideal ratio of nonperforming loans to total loans can vary depending on the bank's loan portfolio, risk management practices, and regulatory requirements. However, in general, a lower ratio is preferred as it indicates a healthier loan portfolio.

A Well-Managed Bank Tries to Keep the Ratio of Nonperforming