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      Question

      The term “evergreening of loans” refers

      to:
      A Over-assessment of creditworthiness Correct Answer Incorrect Answer
      B Repeated renewal of unpaid loans Correct Answer Incorrect Answer
      C Issuance of loans to directors’ relatives Correct Answer Incorrect Answer
      D Excessive interest charges Correct Answer Incorrect Answer
      E Non-compliance with KYC norms Correct Answer Incorrect Answer

      Solution

      “Evergreening of loans” involves renewing loans continuously to avoid classifying them as defaults.

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