Tony Is Facing a Financial Crisis in His Business

question 6

Multiple Choice

Tony is facing a financial crisis in his business. Instead of applying for a loan from a commercial bank, he takes a loan from the cooperative that he partly owns with some of his friends. This cooperative acts as a depository institution where all the members deposit their savings on a higher interest rate than that offered by commercial banks. Being a member of this cooperative, he gets the advantage of being charged lower interest rate on his loan. Based on the information given in the scenario, the cooperative owned by Tony and his friends exemplifies a(n) _____.

• A) investment bank
• B) savings and loan association
• C) private equity firm
• D) credit union

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Definitions:

Coping Processes

Strategies and mechanisms individuals use to manage and adapt to stress, challenges, or adversity.

Counterproductive

Having the opposite of the desired effect, often hindering or obstructing progress.

Meaning-focused Coping

Strategies that involve finding purpose or value in a stressful situation as a way to adapt and deal with the stress effectively.

Emotion-focused Coping

Strategies aimed at managing or regulating emotional responses to stressors rather than confronting the problems themselves.