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Consider the following statements:
Non-performing assets (NPAs) decline in value when
1) Demand revives in the economy.
2) Capacity utilization increases.
3) Capacity utilization, through substantive, is yet sub-optimal.
4) Capacity utilization decreases consequent upon merger of units.
Which of the above statements are correct?

[ESE 2018 Prelims Paper I ECE]
A
B
C
D