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A borrower's loan stopped earning any income for the bank. The loan is now a:
AFixed capital asset
BNon Performing Asset
CStandard earning asset
DLiquid trading asset
Answer & Solution
Correct answer: B. Non Performing Asset
1. An asset must generate income to be performing.
2. Once it stops, it turns non performing.
3. That is an NPA.
_Source: Reserve Bank of India, Glossary (rbi.org.in)._
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