The correct answer is: C. Doubtful Assets
Doubtful assets are assets that have remained non-performing for a period of 12 months or more. They are considered to be a high risk of default and are likely to be written off.
Substandard assets are assets that have remained non-performing for a period of 6 to 12 months. They are considered to be a moderate risk of default and may be written off if the borrower’s financial condition does not improve.
Loss assets are assets that have remained non-performing for a period of more than 12 months and are considered to be a very high risk of default. They are likely to be written off and are not expected to be recovered.
None of these is the correct answer because it does not match the definition of doubtful assets.