MA2 Kaplan Kit Q. No. 333

Q333 A UK local authority, which is governed by The Local Government Act 2003, want to make an investment of surplus funds in a non-approved investment. The level of the proceeds from the investment that have to be set aside as provision for credit liabilities (PCL) is ______% Answer The level of the proceeds from the investment that have to be set aside as provision for credit liabilities (PCL) is 75%. Doubt: I am unable to understand this. Sir, please explain this with the help of a suitable example.