Which statement about Change in NWP and asset valuation should be considered when unstable?

• A. An unstable Change in NWP ratio should prompt only liquidity checks.
• B. An unstable Change in NWP ratio can be addressed solely by pricing changes.
• C. An unstable Change in NWP ratio means losses are inevitable.
• D. An unstable Change in NWP ratio should prompt review of asset valuations and reserve adequacy.

Answer: (D)