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      Question

      According to the RBI guidelines, which of the following

      asset classifications represents loans that are considered to be at risk due to a potential threat of non-recoverability?
      A Standard Assets Correct Answer Incorrect Answer
      B Sub-standard Assets Correct Answer Incorrect Answer
      C Doubtful Assets Correct Answer Incorrect Answer
      D Loss Assets Correct Answer Incorrect Answer
      E Non-Performing Assets (NPAs) Correct Answer Incorrect Answer

      Solution

      Loss assets are those that have become irrecoverable due to factors like fraudulent activities, or due to a severe erosion in collateral value. These assets are at high risk and are written off as unrecoverable.

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