Question

An Asset which does not generate income to the banker is termed as:

A. Performing Assets
B. Fixed Assets
C. Current Assets
D. Non-Performing Assets

Answer 1

Explanation:

(D)

Non performing assets

Answer 2

Answer:

Non-Performing Assets (NPAs) are the assets that don't generate income for the bank.

Explanation:

Fixed Assets are long-term belongings like buildings, equipment, technology etc. They help the bank make income.

Current Assets refer to loans given. If interest is received, they are Performing Assets.

NPAs are bad loans for which interest in unpaid since last 90 days.