Which Statement Best Characterizes the Lending Strategy of Banks

question 174

Multiple Choice

Which statement best characterizes the lending strategy of banks?

• A) Banks make most their profits from account fees.
• B) Banks lend mostly to large and familiar companies rather than smaller local firms.
• C) Banks charge borrowers a slightly lower interest rate than they pay to depositors.
• D) Banks lend money both for investment and consumption purposes.

---

Definitions:

Irrational Thoughts

Thoughts that are not based on reason or logic, often leading to negative and unrealistic outcomes or beliefs.

Self-Defeating Thoughts

Negative thoughts about oneself that reinforce personal failure or inadequacy.

Cognitive-Behavioral Therapy

A short-term psychotherapeutic treatment aiming to change patterns of thinking or behavior that contribute to people's difficulties, thus changing the way they feel.

Present Focus

The practice of being mentally and emotionally engaged in the current moment, often used as a mindfulness technique.