The loan loss provision should increase during periods of high economic growth.

Name: The loan loss provision should increase during periods of high economic growth.
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Question

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During periods of high economic growth, credit risks are generally lower as borrowers are more likely to repay their loans. Therefore, loan loss provisions typically decrease during these periods. Conversely, during economic downturns, loan loss provisions usually increase as credit risks rise.

The Loan Loss Provision Should Increase During Periods of High