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GMAT Sentence Correction (SC) | The bank holds $3 billion in loans that are seriously

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anox wrote:

The bank holds $3 billion in loans that are seriously delinquent or in such trouble thatthey do not expect payments when due.

Issue:Pronoun reference

Analysis:
1. We need singular pronoun "it" to refer to bank (since there is only single bank)
2. As the word "payment(s)" and it's pronoun is also underlined, we need to make sure that they agree in number as well

(A) they do not expect payments when
- "they" is incorrect pronoun

(B) it does not expect payments

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