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      Question

      What is the general provision required for substandard

      assets, without considering ECGC guarantee cover and securities available?
      A 10% Correct Answer Incorrect Answer
      B 15% Correct Answer Incorrect Answer
      C 20% Correct Answer Incorrect Answer
      D 25% Correct Answer Incorrect Answer
      E 30% Correct Answer Incorrect Answer

      Solution

      As per 5.4.1, a general provision of 15% on the total outstanding should be made for substandard assets, without making any allowance for ECGC guarantee cover and securities available.

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