Why Do Banks Require That Business Loan Applications Be Accompanied

question 23

Multiple Choice

Why do banks require that business loan applications be accompanied by cash budgets?

• A)To determine how much cash to loan
• B)To determine whether the loan will be a short-term or long-term loan.
• C)To determine whether the business will be profitable
• D)To calculate the expected return it earns from the loan

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Definitions:

Predictability

The ability to forecast future events or behaviors based on current or past information.

CS and US

In classical conditioning, CS stands for Conditioned Stimulus, which becomes associated with an Unconditioned Stimulus (US) to produce a learned response.

Cognitive Perspective

A psychological approach that emphasizes mental processes such as perception, memory, and problem-solving.

Little Albert

The subject of a famous psychology experiment by John B. Watson and Rosalie Rayner, which demonstrated how fears could be conditioned in humans.